5. Costs, impacts and benefits

Overview

This section identifies and analyses the costs, impacts, and benefits of the policy options considered for establishing the National Social Work Agency (NSWA). Given the early stage of development and the limited engagement undertaken to date, the cost and impact estimates presented here are indicative and will require refinement through further targeted evidence‑gathering ahead of the final BRIA.

Quantified costs to businesses

Direct costs

The NSWA is not expected to impose direct regulatory or financial costs on private businesses in the traditional sense. However, third and independent sector organisations delivering commissioned social work services may face:
Staff time and training costs to engage with new national standards, participate in training and development, or adapt to revised workforce planning and reporting requirements.

Costs associated with aligning internal policies and procedures to new guidance or frameworks issued by the NSWA. Potential procurement and compliance costs for organisations bidding for public contracts, including investment in systems or documentation to demonstrate alignment with NSWA-led standards.

While precise figures are not yet available for all affected organisations, initial estimates suggest that direct costs for small third sector providers to align with new NSWA standards may range from £500 to £2,000 per annum, primarily due to staff training and compliance activities. Indirect costs, such as time spent on reporting or adapting to new frameworks, are anticipated to be in the region of £200–£1,000 per organisation, depending on size and existing capacity.

These estimates are based on feedback from stakeholder engagement and benchmarking against similar policy changes in the sector. Actual costs may vary depending on the scale of implementation, organisational size, and existing infrastructure. Where precise data is unavailable, qualitative feedback and sector averages have informed our assumptions. Further evidence is being gathered and will be included in final BRIA

Indirect costs

Smaller organisations, particularly in rural or remote areas, may face proportionally higher resource burdens.

Evidence suggests increased demand for professional development services, digital infrastructure, and research partnerships, indirectly affecting suppliers and contractors.

Businesses not directly covered by the policy but reliant on affected sectors may experience higher costs or reduced access to goods/services.

Ongoing data collection

The Scottish Government is continuing to engage with affected businesses and representative bodies to refine these estimates. Further quantitative data will be gathered during the shadow phase and implementation, and the final BRIA will be updated accordingly.

At present, there are limited privately owned enterprises that directly employ social workers in Scotland. The primary impact on private sector businesses is through supply chain relationships and commissioned services.

Other impacts

The NSWA aims to create greater consistency in workforce expectations and professional standards, which is broadly welcomed but may raise concerns about local flexibility and diversity in service models.

• The agency may influence public funding allocation for workforce development, affecting the business models of training providers and consultancies.
• Providers may experience pressure to align with multiple national initiatives, potentially leading to implementation fatigue or duplication of effort.
• Opportunities for innovation may arise, including demand for new digital tools, training programmes, and research partnerships.

These impacts are based on early thematic insight only and will be supplemented with more robust evidence as targeted engagement is undertaken.

Scottish firms’ international competitiveness

The NSWA is not expected to have a direct impact on the international competitiveness of Scottish firms, as it is a public sector reform initiative focused on domestic workforce and service improvement.

By strengthening Scotland’s public service infrastructure, the NSWA may indirectly enhance Scotland’s attractiveness as a destination for global capital investment.

The policy does not introduce new trade regulations, tariffs, or barriers that would affect import/export activity or international market access.

Benefits to business

Increased demand for training and development services as the NSWA implements national workforce strategies and professional development frameworks.

Improved workforce planning and stability, potentially reducing turnover and recruitment costs for employers.

Opportunities for innovation in digital infrastructure, data, and implementation support.

Streamlined engagement with government, as a single national agency may simplify communication and coordination for businesses.

Small business impacts

Small businesses, especially in the third and independent sectors, may experience disproportionate administrative or compliance burdens. The NSWA’s implementation plan includes a co-design approach and tailored engagement to ensure expectations are proportionate and support is available. Officials are considering flexible options and exemptions to reduce burdens on small and micro businesses, such as phased implementation, shared resources, or training subsidies.

Further evidence will be gathered from direct engagement with small and micro businesses, which has not yet taken place but will be prioritised in the development of the final BRIA.

Investment

The NSWA is expected to have a positive impact on Scotland’s attractiveness for investment in public service innovation, workforce development, and inclusive growth.

The agency aligns with the First Minister’s Investor Panel recommendations by supporting a skilled and sustainable workforce, promoting collaborative public service delivery, and creating opportunities for innovation.

No negative impacts on investor sentiment have been identified.

Workforce and Fair Work First principles

The NSWA is committed to Fair Work First principles, supporting inclusive recruitment, job satisfaction, and consistent terms and conditions across sectors.

The agency will work with partners to address pay disparities and promote professional recognition and development opportunities.

The focus on workforce planning and education is designed to reduce burnout, improve retention, and enhance the overall experience of working in social work.

Climate change and the circular economy

The NSWA is not expected to have a direct impact on businesses’ ability to contribute to climate or circular economy targets.

The agency will align with Scottish Government sustainability and procurement policies, promoting ethical and sustainable commissioning, digital-first approaches, and local delivery models.

Opportunities exist to promote circular economy principles through procurement and digital innovation.

Competition assessment

The NSWA is not expected to restrict competition within the social work or broader public service sectors.

The agency may enhance competition by creating a more level playing field through consistent national standards and encouraging innovation.

The policy does not limit the number or range of suppliers, the ability of suppliers to compete, or consumers’ ability to make choices.

Consumer duty

The NSWA’s core aim—driving quality and improvement across social work—directly contributes to improving outcomes for consumers, particularly those in vulnerable circumstances.

The agency will publish annual reports and performance data to demonstrate progress and ensure transparency.

The consumer duty, as set out in the Consumer Scotland Act 2020, has been considered throughout the development of this BRIA.

Further evidence will be gathered through targeted engagement to ensure consumer perspectives are fully reflected in the final BRIA.