Taxpayer now takes £150m hit for victims abused in care

By GRAHAM GRANT, SCOTTISH HOME AFFAIRS EDITOR Published: 21:54, 7 May 2026 | Updated: 21:54, 7 May 2026 Taxpayers are to foot a bill of up to £150million in redress payments for survivors of historical child abuse in council-run homes. The Convention of Scottish Local Authorities (Cosla), representing councils, has hiked the sum it is offering by 50 per cent from an original £100million. This money will come out of the cash handed to councils by the Scottish Government, with regular payments into its redress fund expected to continue until 2036. The Scottish Child Abuse Inquiry (SCAI) is looking at the provision of residential care for children and young people in establishments run by local authorities, and those run by voluntary providers used by councils and others to place children in care. Scottish Tory finance spokesman Craig Hoy said: ‘It’s heartbreaking that victims have had to wait so long for justice – with some tragically dying before receiving the compensation they rightly deserve. ‘It was a well-intentioned scheme, intended to provide victims with closure, but it’s been plagued with problems from the beginning. ‘Many will now question whether it’s appropriate for taxpayers to shoulder the costs.’ The former Dunclutha Children's House in Dunoon It comes after the SCAI, which has cost more than £100million, renewed its call for anyone with evidence about children in care being groomed for exploitation to get in contact.  The Scottish Government has announced a separate grooming gangs inquiry chaired by Professor Alexis jay in a bid to protect children from the ‘horrendous harm of sexual abuse and exploitation’. The SCAI has said its investigations are examining reporting systems and the wide-ranging impact of abuse. This includes evidence from individuals abused when in care and from providers. The Scottish Mail on Sunday recently revealed former residents of Dunclutha children’s home in Dunoon, Argyll, had given brave testimony about the suffering they endured at the hands of both U.S. Navy personnel and brutal care home staff during the 1960s and 70s.  Up to 1,400 American servicemen were stationed at Holy Loch, near Dunoon, from 1961. The Scottish Government said the extra redress cash from councils ‘primarily reflects the number and value of individually assessed applications that are anticipated may be received’. Cosla said its leaders had ‘agreed a £50million uplift to the local government contribution to the scheme, with the ‘contribution now capped at £150million’. A spokesman said: ‘This is in recognition of the higher than expected costs. As part of the agreement to an uplift, local government emphasised that there needed to be operational improvements to the scheme, in order to streamline the process and improve the survivor journey.’ No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.