Scotland's National Strategy for Economic Transformation Programme 5: A Fairer and More Equal Society Equality Impact Assessment (Record and Results)

Stage 1: Framing and Effects of Policy

We analysed relevant responses to our semi-formal consultation, such as a joint response from Engender and Close the Gap, and responses from Equate Scotland, CRER, the Scottish Women's Budget Group and the Equality and Human Rights Commission. We also analysed our responses to Scotland Becoming a Fair Work Nation^[1] and subsequently published those responses.^[2]

In addition, the following stakeholder engagement events have taken place:

• Equality and Human Rights roundtable with officials in September 2021;
• Equality and Human Rights roundtable with officials in November 2021;
• Equality and Human Rights Roundtable hosted by the Cabinet Secretary for Finance and the Economy in January 2022;
• Ministerial engagements with the Women's Leadership Centre and the Poverty and Inequality Commission in June 2021;
• Equality and Human Rights Roundtable hosted by the Cabinet Secretary for Finance and the Economy in May 2022;
• Meeting between DG Economy and the Equality and Human Rights Commission in August 2022.

While evidence has been gathered focusing primarily on groups with protected characteristics, it is vital to consider our approach through an intersectional lens. People across Scotland will often have a combination of multiple protected characteristics, different socio-economic backgrounds and household incomes, and experience inequalities in relation to health, education and other aspects of their lives.

Addressing inequalities must also recognise the regional and rural dimensions, including the high incidences of child poverty in certain regions. It is therefore key to remember both the intersectionality of protected characteristics and the wide range of circumstances that influence the opportunities and barriers people face, including their lived experience of poverty, inequality and/or discrimination. An intersectional, person-centred approach to reading, reviewing and using the evidence from this Position Statement is therefore essential.

Results of framing exercise

The Best Start, Bright Futures Tackling Child Poverty Delivery Plan (March 2022) sets out our ambition that work offers an effective and sustainable route out of poverty for families. The Plan sets out how we have responded to the advice and recommendations of the Poverty and Inequality Commission that we set in statute through the Child Poverty (Scotland) Act 2017.

The Plan was underpinned by Scottish Government economic modelling setting out the impact of measures and projecting child poverty levels in 2023 – the year of our interim targets. One of the key commitments within Tackling Child Poverty Delivery Plan is the delivery of an enhanced 'Offer to Parents', which is designed to bring together a range of services and support; including employability, childcare, health, support to access transport and family wellbeing, with the creating packages of support to help priority families transition towards and into work, with the aim of reducing poverty.

Following the consultation: 'Becoming a Fair Work Nation' and the analysis of the responses, the Scottish Government is in the process of developing a Refreshed, Fair Work Action Plan (RAP). This will be published in 2022 and will bring together work to support Scotland becoming a Fair Work nation by 2025, with our commitments to reduce the gender pay gap, at least halve the disability employment gap by 2038, and to progress a range of actions to deliver our new strategy that will take an anti-racism approach on to structural inequalities in the workplace.

The consultation responses and wider stakeholder engagement will inform the refreshed Fair Work Action Plan, which will in turn enable the Scottish Government to better align collective action across these agendas where there is clear synergy (e.g. real Living Wage, effective voice), addressing structural inequalities that perpetuate labour market inequalities through discrete actions.

Our new Anti-racist Employment Strategy will be an all-encompassing strategy. It will set out our approach for employers in addressing racial inequality in the workplace and will underpin our actions in the RAP. These will essentially be to improve labour market outcomes for ethnic minority people.

Design and delivery of services

In order to deliver the policy intent of person-centred services, we are embedding the Scottish Approach to Service Design^[3] within relevant NSET projects.

This requires us to ensure "the people of Scotland are supported and empowered to actively participate in the definition, design and delivery of their public services", and that methods of doing so are inclusive and accessible.

The Scottish Approach to Service Design also requires us to consider whether we are designing the right thing, and to involve users in this process. This helps prevent scenarios where aspects of services may be inaccessible for the target audience, or where some users may be unintentionally excluded.

This is a critical part of achieving the policy's aim of delivering user-centred services that account for individual needs, rather than establishing a single pathway or approach based on characteristic.

In addition to this, the Scottish Government continues to work with partners to establish and agree Service Standards for Employability^[4] which has resulted in clear expectations that services are accessible, and that those delivering provision take steps to put appropriate support in place.

The Scottish Public Sector is committed to the delivery of high quality public services, and recognises that this is critically dependent on a workforce which is well-rewarded, well-motivated, well-led, has access to appropriate opportunities for training and development, is diverse and inclusive, and can influence decision making. These factors are also important for workforce recruitment and retention, and thus continuity of service delivery.

Public bodies in Scotland are committed to applying Fair Work First^[5] in their own organisation and in publicly funded supply chains, through this approach, the Scottish Government, and its public sector partners, are committed to adopting Fair Work First including:

• Appropriate channels for effective voice, such as trade union recognition;
• Investment in workforce development;
• No inappropriate use of zero hours contracts;
• Action to tackle the gender pay gap and create a more diverse and inclusive workplace;
• Providing fair pay for workers (for example, payment of the real Living Wage;^[6] and
• Offer flexible and family friendly working practices for all workers from day one of employment oppose the use of fire and rehire practices.

Data and evidence

Given the wide reach of the policies across equalities groups, monitoring of services will be critical to ensuring the positive impacts identified are achieved.

We engaged with equality stakeholders across Scotland to strengthen our understanding of existing inequalities in the economy and how NSET should address them. This included two Equality and Human Rights roundtables in September and November 2021, which were followed by an Equality and Human Rights Roundtable hosted by the Cabinet Secretary for Finance and the Economy in January 2022. Ministerial engagements with the Women's Leadership Centre and the Poverty and Inequality Commission took place in June 2021 and a Fair Work Roundtable was hosted by Mr Lochhead in September 2022 with key stakeholders on the RAP. The semi-formal consultation on NSET ran in summer 2021.^[7] The evidence paper^[8] that informed the development of NSET includes a range of economic data and trends, some of which might be relevant to Programme-level EQIAs as well.

Working with partners, we have developed and continue to refine our Shared Measurement Framework^[9] for Employability which ensures the data we have available in relation to equalities characteristics and progression is robust to allow for a clearer understanding of who our services are reaching and the outcomes we are supporting the to achieve. We will also undertake evaluation activity^[10] in relation to employability, identifying lessons to help improve future service delivery.

To support our understanding of the impact of the Young Person's Guarantee, the Scottish Government published a Measurement and Evaluation Framework,^[11] structured around Key Performance Indicators (KPIs), Interim Measures and Programme data. Each has a specific role to play in learning about the impact of the Guarantee and the framework itself will support our wider understanding via the Shared Measurement Framework for Employability.

Section 12 sets out the evidence and data analysed for this EQIA. Some gaps have been identified for some groups with protected characteristics i.e. disability, sexual orientation, gender reassignment, pregnancy and maternity and religion and belief. Mostly these are data gaps that have been filled by reviewing qualitative evidence, but in some cases, such as for gender reassignment, the qualitative evidence is also limited.

Governance structure

A dedicated Fairer and More Equal Society Programme Board has been established to oversee and provide assurance over delivery within this programme. Its membership includes external expert and delivery partners.

Project-level delivery will be overseen through existing internal governance for Fair Work, the Fair Work Steering Group, and through the established governance structure within Employability which oversees the development and delivery of our services. This structure embodies partnership at each level, with public sector including Local Government, Third Sector and Private sectors all represented.

Employability specific actions in Best Start, Bright Futures: Tackling Child Poverty Delivery Plan is monitored through the Child Poverty Programme Board.

Extent/Level of EQIA required

By undertaking EQIAs as part of the process of developing policies under NSET's Programme 5 the Scottish Government has sought to demonstrate "due regard" to the equality duty of eliminating discrimination, promoting equality of opportunity and fostering good relations.

As we progress with the development of projects under Programme 5 the EQIA will be revised in line with changes made. As the NSET projects continues to evolve, more detailed EQIAs at project level will be developed. These will also be reviewed and revised as policy is developed, implemented and evaluated.

As policy officials continue to develop the details of policies in Programme 5 there is a need for continuous consultation. Some groups where additional input would be particularly useful during the planning and delivery phases include: minority ethnic communities, mothers or people who are pregnant, people from other marginalised genders and people from different religion or belief groups.