Failure to support Scotland's most disadvantaged 'costs £5.8bn a year'
Failing to support Scotland's most disadvantaged costs at least £5.8bn a year, according to new analysis.
By Sky News
New analysis estimates that failing to support Scotland’s most disadvantaged people costs at least £5.8bn a year.
The research was commissioned by Homeless Network Scotland and carried out by consultancy WPI Economics. It examined the economic impact of severe and multiple disadvantage, known as SMD.
People affected by SMD may face a combination of homelessness, substance dependency and offending. Mental ill health and domestic abuse are also common among those experiencing multiple disadvantages.
The analysis estimated that SMD costs Scotland’s economy £2.2bn each year, the largest part of the overall figure.
It put the annual cost linked to homelessness at £530m. Extra demand for NHS services, including hospitals, mental health support and accident and emergency departments, was estimated at £92.8m a year.
The report examined costs across eight categories. It said the findings showed a need for a more preventative and joined-up approach, rather than support that is fragmented and reactive.
Maggie Brunjes, chief executive of Homeless Network Scotland, said one in 28 adults in Scotland faced extreme disadvantage.
She said the analysis placed a figure on the cost of late and disconnected support, adding that £5.8bn was “not the cost of helping people” but the additional cost of failing to do so.
The report said that when people’s interconnected needs are not addressed effectively, the consequences can be felt across public services, the wider economy and the public finances for many years.