Social Care and Social Work Improvement Scotland (Cancellation of Registration) Order 2026: final business and regulatory impact assessment

Executive summary

Issue and why it needs to be addressed

4. Regulation plays an important role in ensuring consistent and high standards of social care. A key issue with the current regulatory regime relates to resolving the issue of providers who operate, often for lengthy periods, with inconsistent quality and levels of service. Inadequate care has a negative impact on people using the services, including adult care homes, nurseries, childcare and support services. All people experiencing care have the right to expect safe, high quality care that meets their individual needs.

5. At present providers who fail to meet the required standards could be issued with an improvement notice by the Care Inspectorate. This allows the provider a set amount of time to meet the requirements as detailed in the improvement notice. A failure to do so could result in escalation and a move by the CI to propose cancellation of the care service’s registration.

6. In actual practice, where an improvement notice has been issued requiring significant improvement within a specified timescale, in some cases, improvements are maintained for only a very short time, i.e. during inspection. That is not the intention of the improvement notice process, which aims to bring the relevant care service back up to the expected standard it is required to maintain throughout the lifetime of the registration.

7. The new power at section 64(1A)(b) of the 2010 Act allows the Scottish Ministers to prescribe circumstances (other than following the expiry of an improvement notice) in which the Care Inspectorate (CI) may propose to cancel the registration of a care service. As set out in the Order, the circumstances prescribed are:

• where, at any point during the period of 12 months following confirmation by it in writing that the significant improvement required by an improvement notice has been carried out, the Care Inspectorate has reasonable grounds to believe that any aspect of that improvement has not been sustained; and
• where the Care Inspectorate is no longer satisfied that the provider is fit to provide the care service within the meaning of regulations made under section 78 of that Act

8. It should be noted that, once the CI has given notice of its proposal to cancel registration under section 71(3) of the 2010 Act, in accordance with sections 72 and 75 of that Act, the provider would then have the right to make representations as regards the proposal to cancel the registration, and ultimately to appeal the final decision via the Courts.

Intended outcomes

9. This SSI delivers a proposal which will enhance and strengthen the CI’s powers currently available under the 2010 Act. Specifically, it will enable the regulator to speedily take action against poor performing services, better protect social care users, and drive up the consistency and quality of care expected across all social care services in Scotland.

10. The intended outcomes of this policy will be to increase the effectiveness and efficiency of the CI’s powers and procedures. It will enable the CI to act more effectively and more quickly than at present to tackle consistently poorly performing and inadequate care services, which lead to poor outcomes for users of care and residents. This is particularly important where inadequate care services continue to be provided and will help the CI ensure that these individuals are protected and receive good quality of care.

11. The aims of this policy are ultimately to protect users of care, improve their outcomes and ensure the quality of care meets the standard expected.

Options

12. There was a Scottish Government public consultation on ‘A National Care Service for Scotland’ in 2021^[1]. It included a section on social care regulation, and specific questions about the CI’s powers. There was strong support from respondents (88% in agreement), for additional powers for the CI in respect of condition notices, improvement notices and cancellation of social care services.

13. The Scottish Government included a provision in the Care Reform (Scotland) Bill (now section 22 of the Care Reform (Scotland) Act 2025) which amended section 64 of the 2010 Act so as to enable the CI to propose the cancellation of a care service’s registration not just after the expiry of an improvement notice, but at any time in other circumstances which may be prescribed by Order.

14. An Order is therefore necessary for the power to be utilised. The Scottish Government have been working closely with the Care Inspectorate to determine the circumstances which it will prescribe.

Sectors affected

15. This policy applies to the social care sector. Service types affected are listed at paragraph 42.

Engagement completed, ongoing and planned

16. The Scottish Government consulted on the relevant provision in the Care Reform Act (Section 22), and the majority of responses were supportive of enhanced powers for the Care Inspectorate.

17. The Scottish Government sent targeted consultation letters to all key stakeholders inviting their views on the proposed SSI in November 2025. As part of the consultation, the Scottish Government hosted two webinars for social care providers in December 2025. A total of 36 providers attended.

18. Feedback was generally supportive of the proposal, however some providers shared concerns about the power being used too readily without sufficient time being given for improvements to be made. It was also raised that, if the Care Inspectorate were to close a service, continuity of care needs to be considered.

19. Throughout the development of the SSI, the Scottish Government have worked closely with the Care Inspectorate.

Anticipated impacts (intended and unintended, positive and negative) and mitigating actions

20. The overarching aim of this policy is to protect users of care, improve their outcomes and ensure the quality of care meets the standard expected.

21. It is anticipated that this policy will save the Care Inspectorate money due to the efficiencies made to their regulatory processes.

22. Some social care providers may view the policy as increased regulation being placed upon them, and some may fear that they might be closed down more readily by the Care Inspectorate. The Scottish Government have been clear in communication that the Care Inspectorate would only exercise this power as a last resort, in certain circumstances, following all efforts to resolve with the provider.

Enforcement/ compliance

23. The Care Inspectorate will be able to enforce this power in certain circumstances, prescribed by the Order, at their discretion.

Recommendations/ implementation plans

24. The decision to give the Care Inspectorate this new power was taken following public consultation in 2021. It was provided by section 22 of the Care Reform (Scotland) Act 2025, which as noted above amends section 64 of the 2010 Act. It has since been agreed with Care Inspectorate, following consultation with the sector, the circumstances in which they may use this power, if they deem it appropriate. These circumstances are being prescribed by the Order.

25. The Order will come into force on 21 March 2026, subject to it completing the relevant Parliamentary processes.

Evaluation and monitoring of implementation/ review of BRIA.

26. The Care Inspectorate have committed to publishing guidance for social care providers in relation to the implementation of this policy and related procedures, to provide reassurance for providers. Scottish Government officials will remain in contact with them in relation to this commitment and any issues or concerns that may arise as a result of this policy.