Carers Act funding: letter to Councillor Paul Kelly

To: Councillor Paul Kelly, COSLA Spokesperson for Health and Social Care    
From: Tom Arthur MSP, Minister for Social Care and Mental Wellbeing

Now that the Scottish Budget for 2026-27 has been approved by the Scottish Parliament, and as Local Authorities and Integration Authorities progress their budget decisions for the year ahead, I wanted to write to you about the importance of local carer support funding.

Although the previous Minister wrote to you on similar matters in 2024 and 2025, I believe it is important to reiterate these points at this stage.

I know that you and local colleagues fully recognise the immense contribution unpaid carers make, not only to the health and social care system, but also to the individuals they support. 

We estimate that unpaid carers save Scotland £12.8 billion per year in social care costs, along with a further £320 million in health care costs, amounting to £13.1 billion annually (National Care Service (Scotland) Bill Financial Memorandum para 72). I also appreciate how vital the services provided or commissioned by Councils and Integration Authorities are in fulfilling their Carers Act duties. These services play an essential role in helping carers maintain their own health and wellbeing, sustain caring relationships, and prevent the need for more intensive and far more costly social care support.

However, I am increasingly hearing from carer representatives and those running local carer services that pressures on the system are becoming extreme and continue to grow. They report a sharp rise in the number of carers seeking support, alongside funding levels that are failing to keep pace with demand or the rising costs of delivering services.

Bearing this in mind, I want to highlight the importance of the Carers Act funding that has previously been baselined within the local government settlement. The Act was designed to deliver a significant expansion of local carer support by establishing a range of statutory duties for authorities. As you know, this was matched by increases to baselined funding so that, by 2022-23, funding for services for both adult and young carers was £88.4 million higher than in 2017-18 (Carers Act funding: February 2022). Subsequent social care uplifts apply across all social care provision, including support for carers under the Carers Act.

I am therefore asking for your support in ensuring that Local Authorities and Integration Authorities remain fully aware of these funding streams, and in encouraging them to ensure that Carers Act resources are allocated in full to providing support for unpaid carers, including young carers.

I also value COSLA’s leadership in promoting openness as we continue to work alongside IJBs and Local Authorities to improve financial transparency in local spending on carer support. However, I am clear that more needs to be done to improve transparency of how funding for social care is spent. This is critical in supporting evidence-based decision making within our Health and Social Care system. I remain committed to working with COSLA to co-develop improvements that will help communities better understand how resources are used and reinforce confidence in the services delivered by local authorities. 

Finally, I would like to reiterate my appreciation for the vital work Local Authorities undertake to support unpaid carers, and to ask for their continued commitment to prioritising this support during a period of significant financial pressure. We all recognise the essential contributions carers make, and I am keen to ensure they receive the support necessary to safeguard their wellbeing and sustain crucial caring relationships.

I would be grateful if you could share this feedback with local decision makers.

Tom Arthur MSP