Public sector workforce strategic position: equality and Fairer Scotland duty impact assessment

Executive summary

Our approach as outlined in the Fiscal Sustainability Delivery Plan (FSDP) [Fiscal sustainability delivery plan], recognises that improving the public finances requires a cross-public sector effort over the medium to longer-term.

It is important to manage the size and shape of the devolved public sector and the impact of pay rises in a way that reflects the value of our public services while ensuring fiscal sustainability. As such Scottish Ministers have introduced the following Workforce Strategic Position in the Fiscal Sustainability Delivery Plan announced on the 25 June 2025:

Planning for a managed downward trajectory for the devolved public sector workforce in Scotland (0.5 per cent reduction per annum on average over the next five years) as part of a shift in workforce plans and operating models because of service re-design, automation, process improvement, re-prioritisation, mergers, shrinking corporate functions from 2025-26 and over the course of the next parliamentary term (2026 – 2031). Front-line services will remain protected.

The purpose of undertaking the Equality Impact Assessment (EQIA) is to test the proposed Devolved Public Sector Workforce Strategic Position against the needs of the general Public Sector Equality Duty (the PSED) in the Equality Act 2010 (the Equality Act), and to consider how it will affect people with “relevant protected characteristics” when implemented.

The EQIA examines how the proposed devolved public sector workforce strategic position might impact on different people and groups, what steps are taken to prevent discrimination and to identify opportunities to promote equality.

Overall, developing a strategic framework for managing public finances, and as part of that developing a devolved public sector workforce strategic position, is assessed as being likely to have positive impacts for equality and fairness. It helps provide a common understanding of the direction for the medium to longer term, and so provides stability and time to plan ahead, to work through the likely issues, and to consult with those affected. This is much more likely to lead to better equality outcomes than a short-term reactive approach.

The findings of the equality impact assessment indicate a risk of a proportionally larger negative impact on female staff across the public sector. Negative impacts might also occur for older workers who make up a proportionally high share of staff in Local Government or staff from ethnic minority backgrounds who account for a proportionally high share of NHS Scotland staff, however, this depends on final workforce delivery plans. The impact is less clear cut for some of the other characteristics such as religious beliefs or sexual orientation, where data availability is limited.

While the commitment to safeguarding frontline services is expected to offer substantial protection to service delivery, there may still be unintended consequences. For instance, a reduction in back-office staff could result in delays in processing benefits or support services that disadvantaged groups access.

Should the policy have an impact on service delivery, it might also have a negative effect on disadvantaged groups and those with lower incomes since they rely on a broad range of public services to a greater extent that people with higher socio-economic backgrounds. This could be partially mitigated through improved productivity in the delivery of public services, e.g. through making greater use of automation and AI and re-investing extra capacity in front-line services.

The Fairer Scotland Duty under the Equality Act places a duty on certain public bodies in Scotland (including the Scottish Ministers), when they are making decisions of a strategic nature about how to exercise their functions. The FS Duty requires that public bodies have due regard to the desirability of exercising their functions in a way that is designed to reduce the inequalities of outcome caused by socio-economic disadvantage. The Fairer Scotland Duty Impact Assessment (FSDIA) looks the socio-economic impacts of the proposed options, in particular for those on lower incomes.

Should the policy have an impact on service delivery, it might also have a negative effect on those with lower incomes since they rely on a broad range of public services to a greater extent that people with higher socio-economic backgrounds. This could potentially be mitigated through improved productivity in the delivery of public services, e.g. through making greater use of automation and AI.

In taking decisions on this devolved public sector strategic workforce position, Scottish Ministers recognise the key role that public sector workers play in delivering the Government’s purpose and the National Outcomes.