Working-age Economic Inactivity

Finance and Local Government – in the Scottish Parliament at on 3 September 2025.

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Photo of Kenneth Gibson Kenneth Gibson Scottish National Party

To ask the Scottish Government what assessment it has made of the impact on the public finances of working-age economic inactivity. (S6O-04874)

Photo of Ivan McKee Ivan McKee Scottish National Party

The Scottish Government routinely analyses the data on economic inactivity that is produced by the Office for National Statistics. Increasing economic participation can have economic and fiscal benefits, and a Scottish Government analysis that was published last October indicated that even a relatively small increase of 0.25 percentage points in the economic activity rate could boost gross domestic product in the long term by around 0.1 per cent—£180 million—each year.

That is why we are taking action across Government to support people to enter, remain in and progress in work through devolved employability services, health and work support and various commitments in the programme for government.

Photo of Kenneth Gibson Kenneth Gibson Scottish National Party

I thank the Minister for that comprehensive reply. Students are the largest cohort of economically inactive people in Scotland, where we have four-year degrees.

Of those people seeking work in Scotland, 72,000 received employability support from April 2022 to September 2024. Will the minister advise which programmes were most successful in returning people to work, what plans there are to roll out such programmes across the country, and the anticipated average annual boost to both the individual’s and the nation’s finances of each person who moves out of economic inactivity?

Photo of Ivan McKee Ivan McKee Scottish National Party

As I indicated, a whole range of programmes are in place. As was outlined in the programme for government, we have introduced specialist employability support across Scotland to enhance services for disabled people and those with long-term health conditions. Alongside that, we have improved the healthy working lives service and working health services Scotland to ensure that support is available for employees and employers who are managing health challenges in the workforce. Devolved employability services, which are backed by £90 million in 2025-26, play a pivotal role in supporting people towards and into sustainable fair work.

It is worth pointing out that the Deputy First Minister is working with Public Health Scotland and a range of private sector employers on pilot programmes to help to move those individuals back into work.

Photo of Brian Whittle Brian Whittle Conservative

A large proportion of those who are economically inactive are inactive because of ill health, and Scotland has a particularly poor record in that regard. When will the Scottish Government develop strategies along the preventative health agenda to prevent people from falling into ill health in the first place?

Photo of Ivan McKee Ivan McKee Scottish National Party

The data shows that economic inactivity in Scotland is 21.9 per cent, which shows a 1.4 per cent reduction since last year, so that number is moving in the right direction. It is worth pointing out that there are a range of reasons for economic inactivity, including in relation to students—as Kenny Gibson pointed out—and individuals who have retired or who are caring for family members at home. Around a third of that figure is due to ill health.

The work within the population health framework, along with the other work that my colleague the Cabinet Secretary for Health and Social Care is taking forward, is very much targeted at how we join up economic activity with health-related support to get those individuals back into work. The work that the Deputy First Minister is taking forward—which I outlined—in conjunction with Public Health Scotland and private sector employers is also very much in that space.

Photo of Willie Rennie Willie Rennie Liberal Democrat

Mental health issues, attention deficit hyperactivity disorder and autism contribute to a significant proportion of cases among the 20-odd per cent of the working-age population who are economically inactive, but the national health service does not seem to have an effective pathway for ADHD and autism, and the waits for mental health services are incredibly long.

What discussions is the Minister having with the health department to ensure that we can get the system ready in order that we can get those people back to work so that they can make an economic contribution to the country?

Photo of Ivan McKee Ivan McKee Scottish National Party

As I indicated, a range of activities are happening. My colleague the Cabinet Secretary for Health and Social Care is working with the economy portfolio, Public Health Scotland and others to ensure that those services are joined up and are focused on returning people to work as effectively and efficiently as possible.

minister

Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.

Minister

Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.

Cabinet

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It is chaired by the prime minister.

The cabinet is bound by collective responsibility, which means that all its members must abide by and defend the decisions it takes, despite any private doubts that they might have.

Cabinet ministers are appointed by the prime minister and chosen from MPs or peers of the governing party.

However, during periods of national emergency, or when no single party gains a large enough majority to govern alone, coalition governments have been formed with cabinets containing members from more than one political party.

War cabinets have sometimes been formed with a much smaller membership than the full cabinet.

From time to time the prime minister will reorganise the cabinet in order to bring in new members, or to move existing members around. This reorganisation is known as a cabinet re-shuffle.

The cabinet normally meets once a week in the cabinet room at Downing Street.