Financial Transparency and Profit Limitation in Children's Residential Care: business and regulatory impact assessment

Section 4: Additional implementation considerations

4.1 Enforcement/ compliance

One of the important aims of the consultation is to work with services to ensure that the financial transparency measures are not overly burdensome. We will work with Scotland Excel and the Care Inspectorate to align existing processes wherever possible.

To ensure compliance with the legislation, a provider who refuses to supply the relevant information could risk having their registration with the Care Inspectorate removed. However, this would only be if there was a refusal to provide information following reminders/warnings, or if – after the further consultation outlined above – excessive profits were found and no changes or improvements were made.

We will have more detail on what this will look like once the consultation has been completed and analysed.

4.2 Internal Market/ Intra-UK Trade

We are working to consider any impacts across the UK internal market. These considerations will form a key part of any plans made. We understand that many for profit services work across more than one UK nation and will be considering this in detail before any changes are finalised.

4.3 International/ Competition Assessment

We do not currently believe that there will be impacts here, but we will be considering this area as we further develop the provisions.

4.4 Workforce and Fair Work

Working out any impacts on the residential childcare workforce and fair work are key to the consultation. Any measures introduced must be sensitive to the ongoing challenges within the sector e.g. recruitment and retention.

4.5 Climate change/ Circular Economy

We do not believe that the measures would have impacts on climate change or the circular economy.

4.6 Consumer Duty

We will consider on an ongoing basis if any provisions would have any impacts on consumer duty.