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

Section 3: Costs, impacts and benefits

Quantified costs to businesses

60. There is the possibility that, should a social care provider be in a position where they must be able to evidence that they can sustain the necessary improvements to avoid closure, this could have cost implications for them. It is possible that this could be either financial or resource costs, or both. However, this is an essential part of the statutory process which aims to improve outcomes for those people being cared for and supported.

61. It is considered that this policy will be at least cost-neutral for the Care Inspectorate to implement. However in the long run it should save the Care Inspectorate money and resource, as it makes their enforcement processes more efficient and effective.

Other impacts

62. The Scottish Government do not consider that there will be other impacts in addition to what is noted above.

Scottish firms’ international competitiveness

63. The Scottish Government do not consider that these proposals will affect Scottish business’ ability to compete internationally or impact on capital investment in Scotland.

Benefits to business

64. As noted above, it is considered that this policy will save the Care Inspectorate – a non-departmental public body - money and resource, by making their processes more efficient and effective.

65. In addition, there may be benefits for businesses that work within the social care sector, as having a more effective and efficient regulatory environment provides a stable business environment to allow long term investments to be made.

Small business impacts

66. There is a mixture of third sector, private and local government social care provision across Scotland, including some small-scale businesses. As it stands, there is a continual duty under legislation for care service providers to provide a quality service, and the objective of this policy is to bring the relevant care service back up to the expected standard it is required to maintain throughout the lifetime of its registration.

67. As previously described, there may be cost implications for providers in this situation.

Investment

68. The Scottish Government do not consider that the proposed regulation will have any potential to make Scotland a more, or less, attractive place for global investment.

Workforce and Fair Work

69. The overall objective of this policy is to protect users of care services, and drive up the standard of care. This may also have a positive impact for those working in these services in terms of job satisfaction.

70. The Scottish Government do not consider that the proposal will affect the ability of these businesses to meet Fair Work First principles.

Climate change/ Circular Economy

71. The proposed Order will not affect climate change or the circular economy.

Competition Assessment

72. The Scottish Government do not expect this enhancement of the Care Inspectorate’s powers to have an impact on competition as it will not:

• Limit the number or range of suppliers
• Limit the ability of suppliers to compete
• Limit suppliers’ incentives to compete
• Affect consumers’ ability to engage with the market and make choices that align with their preferences
• Affect suppliers’ ability and/or incentive to introduce new technologies, products or business models.

Consumer Duty

73. The purpose of this SSI is to deliver a proposal which will enhance and strengthen the CI’s enforcement powers. 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. It is therefore likely to have a positive impact on service users and reduce harm.

74. 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.

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