Real Living Wage Now Condition for Public Sector Contracts

Companies bidding to win Scottish Government contracts will now have to pay workers at least the Real Living Wage.

This will ensure public sector contracts tackle in work poverty and promote fair work practices across the public, private and third sector where there is a risk of low pay.

SNP Ministers consistently promote the Real Living Wage, which is always more than the UK National Living Wage that currently sits at £8.91 per hour. The Real Living Wage is currently £9.50 per hour, while the Living Wage Foundation is anticipated to announce the new rate in November.

Fair Work Minister Richard Lochhead MSP said:

“As outlined in our Programme for Government, a range of measures are being taken forward to embed Fair Work First across the economy. The Scottish Government recognises pay as a clear way that an employer can demonstrate a commitment to their workforce, helping tackle in-work poverty alongside wider Fair Work First criteria.

“We encourage organisations, regardless of size, sector or location, to adopt our progressive fair work approach which will help ensure all staff receive a fair day’s pay for the work they do.”

Kenneth Gibson MSP added:

“The Scottish public sector spends around £13 billion every year to deliver public services or capital building projects that can provide vital work for businesses across North Ayrshire and Scotland.

“It’s only right to lead by example and ask that as a default position, such contracts ensure that workers are paid at least the Real Living Wage.

“The SNP believes inhaving sustainability, wellbeing and fair work at the heart of our economic transformation, which is why the Scottish Government is putting all these measures in place to make Scotland a Fair Work Nation by 2025.”

The real Living Wage must be paid where it is a proportionate and relevant requirement and it does not discriminate amongst potential bidders.

Individual public authorities determine when it is appropriate to include fair work conditions in tenders, in tandem with other important sustainable outcomes like reaching net zero emissions and creating a positive impact on the local economy.

For more information about the Real Living Wage, visit the Living Wage Foundation website.

Further guidance on public sector procurement and fair work can be found here.

ENDS