12. Summary and recommendation
Having consulted extensively with stakeholders and considered the costs and benefits to all those affected, the recommended policy option is the statutory financial redress scheme as set out in Section 3 above. This will achieve the Scottish Government's aims of:
- Acknowledging and responding to the harm that was done to survivors of historical child abuse in care in Scotland.
- Enabling care providers to acknowledge the harm that occurred at their institutions as part of a collective expression of recognition.
Careful consideration has been given to establishing a scheme which is proportionate, consistent and transparent, taking account of the costs and benefits to all those affected.
12.2 Summary costs
The Act gives rise to one-off set up costs to the Scottish Government estimated at £1.6 m in 2020/21 and £2.1 m in 2021/22. Ongoing costs are estimated to amount to £408 m over five years, with £370 m falling on the Scottish Government and £23 m on other bodies. Contribution amounts have not been included within these costings as they are currently unknown. Any financial contributions received will be offset against the costs on the Scottish Government. Financial implications of the Bill are described in more detail in the Financial Memorandum and Revised Financial Memorandum. Below is a summary of estimated costs.
|Direct set up costs to Scottish Government||£1.66 m||£2.09 m||£3.76 m|
|Direct ongoing costs to Scottish Government||£73.5 m||£73.5 m||£73.5 m||£73.5 m||£73.5 m||£367.5 m (including £2.5 m which will be spent in 2026/27 on counselling costs)|
|Ongoing costs to former and current care providers||Full extent is unknown due to uncertainties around contributions.|
|Ongoing costs to survivor support organisations||Unknown until scheme is live / approach is developed further.|
|Ongoing costs to local authorities (not including £100 m contribution)||£1.7 m – £2.9 m||£1.7 m – £2.9 m||£1.7 m – £2.9 m||£1.7 m – £2.9 m||£1.7 m – £2.9 m||£8.7 m - £14.7 m|
|Ongoing costs to NHS||£0.2 m||£0.2 m||£0.2 m||£0.2 m||£0.2 m||£1.2 m|
|Ongoing costs to Police Scotland||£1.3 m||£1.3 m||£1.3 m||£1.3 m||£1.3 m||£6.5 m|
|Ongoing costs to National Records of Scotland (NRS)||£0.01 m||£0.01 m||£0.01 m||£0.01 m||£0.01 m||£0.07 m|
|Ongoing costs to Scottish Courts and Tribunals Service (SCTS)||£0.01 m||£0.01 m||£0.01 m||£0.01 m||£0.01 m||£0.05 m|
|Ongoing costs to Crown Office and Procurator Fiscal Service (COPFS)||£0.1 m||£0.1 m||£0.1 m||£0.1 m||£0.1 m||£0.5 m|
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