Written Question · S6W-42760 · Session 6
What assessment it has made of the quality, completeness and reliability of the new data used in the revised social care funding formula, i…
The question
To ask the Scottish Government what assessment it has made of the quality, completeness and reliability of the new data used in the revised social care funding formula, including how that data was validated, whether any known limitations were identified, and, if so, how those limitations were communicated to the Settlement and Distribution Group and COSLA leaders prior to approval of the revised approach.
The answer
The formula used to distribute funding between Scotland’s 32 Local Authorities is agreed with COSLA on behalf of all 32 councils each year. The formula is kept under constant review and any changes in quantum or distribution are discussed and agreed through COSLA’s formal financial governance process including the jointly attended Data Issues Working Group (DIWG) who make recommendations to the Settlement Distribution Group (SDG), who in turn make principle-based recommendations to COSLA Leaders.SDG is a jointly chaired Scottish Government and COSLA officer group. Members are drawn from Directors of Finance across Scotland and their role is to make professional, principle-based officer recommendations. The SDG is not a decision-making body but provides evidence-based recommendations to COSLA Leaders on issues impacting the Local Government Settlement.DIWG is a technical advisory group including representation from local authorities that exists to support the work of the SDG and to provide assurance over the quality, completeness and reliability of the data used in the formula. Where required, it provides technical advice and recommendations on the practical application of distribution and settlement issues and has a key role in making recommendations to the SDG. The DIWG is jointly administered between the Scottish Government and COSLA, with members from local authorities across Scotland who will scrutinise the merits of data sources.It is the agreed approach of DIWG, SDG and COSLA leaders that all decisions on the funding formula be made on the basis of principle. Neither COSLA nor Councils are therefore formally advised of the impact on individual authorities as part of the recommendation process although it may be possible for council officials to estimate the impact of individual decisions.The distribution formula considers over 140 service areas including Education, Social Care, Leisure, Roads, Waste and Housing. Further information on the funding formula can be found at the following link.Local government finance statistics
- gov.scotThe availability of the 2022 Census data for the first time has seen a number of indicators (GAEs) updated substantively in the last 18-24 months. In addition, DIWG routinely assesses the underpinning formula to ensure it most appropriately aligns funding with need.Meaningful budget engagement with COSLA and Councils has been a cornerstone of the preparations for the Scottish Budget 2026-27. Over the summer and following extensive consultation with councils, SDG considered three papers on the indicators used to distribute funding for Personal & Nursing Care for the Elderly, Residential Care for the Elderly and Services for Home-based Elderly respectively.Alongside the papers that were considered by the DIWG and SDG, Scottish Government officials also provided council and COSLA finance officers with a presentation on the impact of the updated indicators to ensure the issues were widely and clearly understood and have continued to support councils and respond to any questions raised throughout the process. On 16 and 18 December 2025, in line with the commitments set out in the Fiscal Framework between Scottish Government and Local Government, Scottish Government officials also provided training to council finance officials on the Local Government Settlement more generally ahead of the Scottish Budget.The Scottish Government plays no role in providing advice to COSLA Leaders following the recommendations of SDG but at their meeting on 31 October 2026, COSLA Leaders agreed the SDG recommendations regarding the distributions for Personal and Nursing Care for the Elderly, Residential Care for the Elderly and Services for Home-based Elderly.The changes do not involve the use of any new indicators, and so there are no new concerns around data quality or suitability. The indicators used – 2022 Population Census data, NRS death rates and population estimates, Council Tax data and
- gov.scotThe availability of the 2022 Census data for the first time has seen a number of indicators (GAEs) updated substantively in the last 18-24 months. In addition, DIWG routinely assesses the underpinning formula to ensure it most appropriately aligns funding with need.Meaningful budget engagement with COSLA and Councils has been a cornerstone of the preparations for the Scottish Budget 2026-27. Over the summer and following extensive consultation with councils, SDG considered three papers on the indicators used to distribute funding for Personal & Nursing Care for the Elderly, Residential Care for the Elderly and Services for Home-based Elderly respectively.Alongside the papers that were considered by the DIWG and SDG, Scottish Government officials also provided council and COSLA finance officers with a presentation on the impact of the updated indicators to ensure the issues were widely and clearly understood and have continued to support councils and respond to any questions raised throughout the process. On 16 and 18 December 2025, in line with the commitments set out in the Fiscal Framework between Scottish Government and Local Government, Scottish Government officials also provided training to council finance officials on the Local Government Settlement more generally ahead of the Scottish Budget.The Scottish Government plays no role in providing advice to COSLA Leaders following the recommendations of SDG but at their meeting on 31 October 2026, COSLA Leaders agreed the SDG recommendations regarding the distributions for Personal and Nursing Care for the Elderly, Residential Care for the Elderly and Services for Home-based Elderly.The changes do not involve the use of any new indicators, and so there are no new concerns around data quality or suitability. The indicators used – 2022 Population Census data, NRS death rates and population estimates, Council Tax data and
In the Official Report
No contribution in the Official Report cites S6W-42760 by reference.