Social Security investment helping grow the economy

Potential £300 million boost to Scottish GDP.

Figures published by Chief Economist Gary Gillespie estimate that Scottish Government spending on social security could deliver a £300 million boost to Scotland’s economy over the short term.

The findings also show that long term investment in labour market and social security policies could boost GDP by around £180 million a year.

First Minister Humza Yousaf said:

“In my first Programme for Government I made it abundantly clear that reducing poverty, delivering growth and providing high-quality public services would be the driving mission of my government. We are working to maximise every lever at our disposal to tackle poverty in our country and having a fair, green and growing economy is central to that mission.

“Economic modelling published earlier this year estimates that 100,000 children will be kept out of relative poverty next year as a direct result of Scottish Government policies. These are the lives of children across Scotland, in every single community, being improved by the action we are taking.

“Analysis published today shows that as well as improving the lives of children across Scotland, the investment we are making in social security spending, alongside measures to help people into work, could have a significantly positive impact on our economy, delivering a £300 million boost to the Scottish economy.

“Growing our economy and tackling poverty goes hand in hand, and that is why my government will continue to use all the powers at our disposal to build on the progress we are making to make people’s lives better in Scotland.”

Economic impact of spending on social security - Technical note - (

Child poverty cumulative impact assessment: update - (

Programme for Government - (

The Scottish Government has also published a report by the Chief Social Policy Adviser bringing together evidence on the outcomes associated with Social Security Scotland spending. This analysis shows that Social Security Scotland spending is supporting a variety of Scottish Government outcomes related to reducing child poverty and material deprivation, improving health and wellbeing and helping to narrow inequalities.

Examining outcomes associated with Social Security Scotland spending: an evidence synthesis - (


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