Failure to support most disadvantaged in Scotland 'costs £5.8bn a year', says analysis

Failing to support Scotland's most disadvantaged costs at least £5.8bn a year, according to new analysis.

The research - commissioned by Homeless Network Scotland and carried out by WPI Economics consultancy - found there is a "significant economic cost" to severe and multiple disadvantage (SMD) in Scotland.

Experts have found that people facing SMD are those affected by a combination of issues such as homelessness, substance dependency and offending, with mental ill health and domestic violence and abuse also common.

The analysis found that the cost to Scotland's NHS amounts to an estimated £92.8m annually through increased demand for healthcare services including hospital, mental health and A&E.

It projected costs across eight categories, with expenses relating to homelessness estimated at £530m per year.

The largest proportion of the £5.8bn figure comes from the annual cost of SMD to Scotland's economy, which is estimated at £2.2bn.

The report said the findings highlight the need for a "more preventative, joined-up approach" and a move away from "fragmented and reactive support".

It stated: "When people's interconnected needs are not addressed effectively, the consequences are felt across public services, the wider economy and the exchequer for many years to come."

Homeless Network Scotland is now set to launch The Level, which it describes as a national protocol that can provide the toolkit for putting joined up working into practice.

Maggie Brunjes, the charity's chief executive, said: "One in 28 adults in Scotland faces extreme disadvantage. We have long known that late, disconnected support fails people and costs the public purse.

"This analysis puts a figure on that failure of at least £5.8bn a year. That is not the cost of helping people. It is the extra cost of failing them.

"Scotland already commits to earlier help and joined-up services, so nobody is sent from door to door.

"The problem is not the promise. It is that too many people whose lives do not fit one service still never get near it. When several problems land at once, the system is still built around single issues.

"That is not a failure of care. It is a failure of design - and that is where this bill is run up. Every year without a shared method to fix that is another year of paying for it.

"The Level is that method. It sets a national floor no decision or service should fall below and the expectation that someone stays with you, so you are not left to join the system up alone.

"People should not have to find their way through complex services by themselves, especially those already carrying the most. We will work with government and partners to put this into practice."

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The Level will be launched during Homeless Network Scotland's conference, which is taking place in Perth on Tuesday and Wednesday.

The Level is supported by more than 50 organisations, including Public Health Scotland, Citizens Advice Scotland, The Salvation Army, and the Scottish Prison Service.

The Robertson Trust, an independent grant making trust which funded the independent analysis, is also helping to build support for organisations putting The Level into practice.

Scotland's social justice and housing secretary Shirley-Anne Somerville said: "We want to ensure people get the right help and care they need at the right time - we are committed to preventing crisis before it occurs, improving outcomes through earlier intervention and taking a whole-person approach through all our public services.

"Key to our approach is reform of Scotland's public sector - this is about delivering the best public services for people across the country.

"We need to ensure investment is focused on frontline delivery, with the right staff in the right roles to empower communities and deliver real improvements in public services."

(c) Sky News 2026: Failure to support most disadvantaged in Scotland 'costs £5.8bn a year', says analysis