Companies bidding to win Scottish Government contracts must pay the real Living Wage

Companies bidding to win Scottish Government contracts will have to pay the real Living Wage, ministers have announced.

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.

The real Living Wage has been consistently higher than the UK National Living Wage and helps create an inclusive and fair economy for all.

Business Minister Ivan McKee said: “We want to use every opportunity possible to promote fair work and ensure people are paid at least the real Living Wage. By using procurement powers to ensure bidders pay the real Living Wage, the Scottish Government is leading by example to help influence employment practices and embed fair work principles.

“We will continue to engage with relevant sectors to encourage others to adopt this change across the public, private and third sector. We are firmly focused on creating the right economic conditions and fair work practices to drive a greener, fairer and more sustainable economy.”

Fair Work Minister Richard Lochhead 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 will also introduce further changes to strengthen criteria for Scottish Government grants from next summer, subject to limits on devolved competence, as part of the Cooperation Agreement with the Scottish Green Party.

“The number of accredited living wage employers has increased from 14 in 2014 to just over 2,300 in 2021 and we would encourage more businesses to sign up to help ensure more people see their pay uplifted to at least the real Living Wage. 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.”

The Fair Work Convention Co Chairs Professor Patricia Findlay and Grahame Smith welcome the announcement from the Scottish Government on introducing a requirement to pay the real Living Wage to public contracts.

Commenting on the announcement, Professor Patricia Findlay said: “The Fair Work Convention welcomes today’s announcement from the Scottish Government. Low pay is one of the key drivers of in-work poverty.

“All too often we find that disabled workers, BME workers, young workers and women in particular face precarious and low paid work, so addressing very low pay in public contracts can begin to support better outcomes for these and other workers.

“Pay is a crucial element of fair work, and for too long the obstacles to workers’ challenging and improving low pay in certain occupations and sectors have been considerable.  Given this, government action to help address low pay is necessary to deliver fair work as well as to deliver on equality and anti-poverty priorities.

Grahame Smith added: I’m delighted that the Scottish Government has accepted the Convention’s view that there is no legal impediment to making the payment of the real living wage a requirement of those in receipt of public contracts.

“While this decision is a significant step forward and will make a real difference for thousands of low paid workers, we will be exploring urgently how conditionality can be extended to all dimensions of fair work, particularly requirements around collective bargaining, union recognition and the adoption of all terms and conditions negotiated nationally between employers and unions.”

One in 12 key workers do not qualify for statutory sick pay

  • A third of key workers (33%) say they do not get full sick pay
  • A quarter of key workers (24%) say they get only £96pw statutory sick pay
  • Extending sick pay protection to all workers would cost the same as just 1% of the test and trace budget

New analysis published by the TUC shows that one in 12 key workers (788,000 people) do not qualify for statutory sick pay (SSP) – despite many of them being at greater risk from Covid-19 due to the frontline nature of their job.

The analysis uses the same definition of key worker as government. It finds that those excluded from SSP include more than a quarter of cleaners (27%) and retail workers (26%); nearly one in 10 teaching assistants (9%); and over one in 20 care workers (6%).

Additional figures from polling for the TUC by BritainThinks show that, for those who self-identify as key workers in the context of the Covid pandemic, a third (33%) report getting less than full sick pay (below their usual rate of pay); and a quarter (24%) report getting only the minimal protection of SSP at just £96 per week.

The TUC is calling for sick pay to be reformed so that:

  • The lower earnings limit rule is removed, allowing the lowest paid workers to qualify for statutory sick pay for the first time
  • The rate of SSP is raised to at least the level of the real living wage (£330 per week).

Research commissioned by the TUC from the Fabian Society shows that the cost of raising SSP to the equivalent of the real Living Wage for employers without an occupational sick pay scheme would be around £110 per employee per year – or just over £2 a week.

The research also shows that removing the lower earnings limit, which prevents those on low earnings from accessing statutory sick pay, would cost employers a maximum of £150m a year. And it would cost the government less than one per cent of the test and trace scheme to support employers with this cost.

TUC General Secretary Frances O’Grady said: “Nobody should have to choose between going into work if they’re sick or should be self-isolating, or doing the right thing by staying home, but facing hardship as a result. But that’s the choice facing many key workers who kept the country going during the pandemic.

“Our key workers deserve the dignity, security and safety of proper sick pay and a decent pay rise too. They have earned it, often in frontline jobs with much greater risk of infection than those who could work from home.

“The cost of fixing the UK’s broken sick pay system is small compared to other public health measures like test and trace. Ministers must urgently make every worker eligible for statutory sick pay. And it should be worth at least as much as the real Living Wage.”

The Fabian Society report Statutory Sick Pay: Options for reform is available here:

 https://www.tuc.org.uk/sites/default/files/SSPreport.pdf

Tacking Poverty and Building A Fairer Country

Speech by the Social Justice Secretary, Shona Robison, opening yesterday’s Tackling Poverty and Building A Fairer Country debate

Presiding Officer, I am pleased to open this debate on the urgent need for us to tackle poverty and build a fairer, more equal country.

We must seize the opportunity, build upon our strong efforts to date, and use every lever at our disposal to bring about the change needed to tackle this problem.

We already invest around £2 billion each year in support for people on low incomes, including over £672 million targeted at children. We have a strong focus on those at greatest disadvantage, including disabled people. And we are supporting innovative action with our £50 million Tackling Child Poverty Fund.

But we must do more. That is why we have committed a wide range of ambitious action to be delivered in the first 100 days of this Parliament – maintaining the tremendous pace taken of change throughout the COVID pandemic.

This is a priority across all Ministerial portfolios. No one action will bring about the change needed, it needs all parts of government and broader society to work together and to impact the drivers of poverty reduction – increasing household incomes from work, reducing costs on essentials and maximising incomes from social security.

The eradication of poverty and building a fairer more equal country must be a national mission for government, for our parliament and for our society. We must try, where possible, to unite on this issue and work together to create a fairer Scotland.

Backed by over £1 billion of additional funding, our response to the pandemic shows that we can make change happen at the pace and scale required to support people and improve their lives. And we wand to build on this can do approach.

We delivered free school meal support during all school holidays and periods of remote learning for children from low income families – helping to tackle food insecurity during the pandemic. We will continue this whilst expanding Free School Meal support to all primary pupils, which will start within the first 100 days of this Parliament.

Also, in our first 100 days we will complete the roll-out of 1,140 hours of funded Early Learning and Childcare and have set out the next stage of our ambition to expand childcare further and develop a wraparound childcare system, providing care before and after school, all year round. This will make an important contribution to children’s development and will unlock the potential of parents in the labour market.

We will also deliver our £20 million summer programme for pupils, helping children socialise, play and reconnect – an essential investment to support the wellbeing of all children and young people [backed by £7.5 million from our Tackling Child Poverty Fund].

Through two Pandemic Support Payments of £100 to low income families with children we put money directly into the pockets of those who needed it most.

Building upon this approach, we will effectively pay the Scottish Child Payment through introducing bridging payments of £520 for families not yet eligible for the Payment, with £100 to be paid to families this summer. We will also provide £130 to every household who received Council Tax Reduction in April, reaching around 500,000 households.

I am pleased I can also make two announcements.

First, building on the practical support we offered during the pandemic, we will be providing the British Red Cross with a further £250,000 to continue their cash-first crisis support to those most at risk of destitution. This includes help to those impacted by the UK Government’s hostile policies that exclude them from most mainstream supports including the Scottish Welfare Fund.

And secondly, in recognition of the importance of listening to families affected by poverty, we will trial Family Wellbeing Budgets to put families firmly in control of the support they need. This new support will be delivered in partnership with the Hunter Foundation and will help to improve people’s wellbeing and capabilities.

Presiding offer, where we have the powers we are making a difference to people’s lives.

Nowhere is this more evident than in our approach to housing. Scotland has led the way in the across the UK with almost 100,000 affordable homes delivered since 2007, over 68,000 of which were for social rent. This is making a significant difference to people right across the country, and particularly for families with children.

We want to deliver a further 100,000 affordable homes by 2032. It is our aim that at least 70% of those homes will be for social rent, helping to tackle child poverty and homelessness.

But to tackle poverty effectively we must deliver a fair work future for Scotland, and we are working hard to do just that just now – but we are constrained by the powers available to us.

We cannot accept a future where two thirds of children living in poverty come from working households and where people are forced to rely on benefits to top-up their earnings.

We have to transform workplaces to tackle poverty and long-standing labour market inequalities, such as the disability employment gap and the barriers to employment faced by people from minority ethnic backgrounds.

With full powers over employment we could, as a minimum, ensure that all employees in Scotland receive the Real Living Wage, ensuring that their wages represent the true cost of living.

We could outlaw unfair fire and hire tactics, prohibiting employers from dismissing employees and subsequently re-employing them on diminished terms and conditions, and we could ban inappropriate and exploitative use of zero hour contracts, giving people the certainty about their working hours – ensuring they can plan their lives and incomes.

That’s why I have asked all party leaders to support our request to the UK Government for the full devolution employment powers to this parliament. So we can tackle poverty with the powers we need to make the change.

Social security is also an important tool to tackle poverty, and again those powers don’t lie in our hands. 85% of spending remains at Westminster alongside income replacement benefits such as Universal Credit and Employment and Support Allowance.

If we didn’t already need it, the pandemic further evidenced that the UK welfare system is not fit for purpose and risks undermining hard won progress. This is the system people in Scotland have to rely on and we shouldn’t have to mitigate against polices we disagree with like the £80 million we spent last year on Discretionary Housing Payments to mitigate the bedroom tax in full and support people with housing – we could be investing in other anti-poverty measures. If we had the powers here we would be able to do that. 

The removal of the £20 uplift to Universal Credit is a callous act which will push 60,000 families across Scotland, including 20,000 children, into poverty and will result in families unable to work receiving, on average, £1,600 less per year than they would have done a decade ago – a decade ago – in 2011.

That’s a massive threat to the progress we could make here. We could be delivering the doubling of the Scottish child payment with one hand, only to see it removed by Westminster welfare policies  with the other. Surely there is no-one across this chamber that can think that isin any way a good idea or a fair system?

We need to make significant investment into the pockets of those who need it most need. The Scottish child payment does that. That’s why it’s so important.

We have urged the UK Government to make the changes needed and to deliver a social security system which is fit purpose – scrapping harmful policies such as the two child cap, the rape clause, the benefit cap and 5 week wait under Universal Credit. Unfortunately, our calls, alongside many charities, organisations, and even the UN Poverty Rapporteur have been ignored. It’s time for full powers to come here so we can make the difference.

We have already shown we can make a difference – a public service based on human rights with respect and dignity at its heart and viewed as an investment in the people of Scotland.  Principles we enshrined in law.

Through our powers, we are tackling child poverty head on, with the Scottish Child Payment, which currently pays £40 every four weeks for every eligible child under 6. We are committed to doubling this to £80, making even greater impact.

Alongside our Best Start Grant and Best Start Foods we are providing over £5,300 of direct financial support for families by the time their first child turns six and further for subsequent children as we don’t put a cap on children. These payments are making a real difference to low income families, helping them to access the essentials they need.

That support is unmatched anywhere else in the UK.

Presiding officer, our next steps will build on the strong foundation we have set, and will be taken forward at pace these changes. No one who sits in this parliament, whatever their political beliefs, can underestimate the scale of the challenge that we face.

I want to take that forward and I’m pleased to work with anyone across this chamber who wants to join me in doing that.

Fairer pay for social care workers

A commitment to ensure adult social care workers receive at least the Real Living Wage of £9.50 an hour has been agreed with COSLA.

Funding of £64.5 million will be committed to ensure adult social care workers will be paid at least the Real Living Wage from May 2021, backdated to April 2021. This is an important early response to the recent Independent Review of Adult Social Care and comes as a joint statement between with COSLA has been issued setting out how they will work together to deliver on the review’s recommendations.

Subject to the outcome of the Scottish Parliament elections,  minimum standards for employment terms and conditions will be developed for the sector in partnership with COSLA. This includes a requirement for ethical commissioning which ensures procurement decisions take into account factors beyond price, including fair work, terms and conditions and trade union recognition.

There will also be new measures introduced to ensure staff, the majority of whom are women, are able to raise concerns, respond to local conditions and support an effective collective bargaining role in a sector where staff currently lack a clear representative voice.  

The Scottish Government and COSLA have also jointly committed to working together to deliver recommendations of the independent review, including:  

  • ending charging for non-residential services as soon as possible
  • introducing agreed ethical commissioning principles 
  • overhauling eligibility criteria to ensure social care support is based on human rights and needs
  • implementing measures to put voices of those with lived experience at the heart of policy development and service delivery
  • ensuring unpaid carers are fully supported to continue in their caring roles

Health Secretary Jeane Freeman said: “Social care workers do a critical and invaluable job and they should be paid fairly for it. The Scottish Government want Scotland’s social care services to be high quality and consistent for those who use them and also for those who deliver them.

“Derek Feeley’s Independent Review of Adult Social Care set out clearly the need for better recognition and treatment of the, largely female, workforce, describing this as a key issue of equality and gender fairness, as well as an investment in critical service provision. The Scottish Government agree with those conclusions.

“This funding will help support a move to an ethical approach to commissioning which recognises the economic and social value of the work that staff in social care do, and that decisions must be about more than just price.”

COSLA Health and Social Care Spokesperson Councillor Stuart Currie said: “This statement of intent will allow work to begin now which will make improvements to adult social care in Scotland, and I welcome this progress.

“It is evident that there is significant discussion needed around the areas in the review that relate to governance and accountability within the report.

“However, COSLA Leaders are clear that there is much in the report to be welcomed  particularly the principles in relation to empowering people, valuing the workforce and embedding a human rights-based approach in social care.”

Living wage for capital’s adult social care workers

Unite reps in Edinburgh have ensured a 3.3% uplift for adult social care contracts & a Living Wage.

Unite Scotland has welcomed the move by the Edinburgh Joint Integration Board (EIJB) to allocate £6m funding for adult social care workers and personal assistants who work in the third and independent sectors. 

Backdated to 1 April, social care support workers in Edinburgh will be awarded a real Living Wage of £9.30p/h, including sleepovers & hours worked by personal assistants.

The funding uplift was agreed on Monday at an EIJB meeting following extensive lobbying by Unite voluntary sector representatives in Edinburgh to ensure that adequate funding was allocated to deliver the 3.3% national uplift for adult social care contracts for the Living Wage commitment, announced by the Cabinet Secretary for Health, Jeanne Freeman MSP on 12 April.

Mary Alexander, Scottish Deputy Secretary: “This is a victory for Social Care in Edinburgh. It rightly recognises the critical role workers have, looking after vulnerable adults in Edinburgh.

“”The decision to allocate £6m will now ensure all adult social care workers commissioned by the local authority to provide adult social care whether in care homes, care at home or community-based services will not be working for less than the Living Wage of £9.30 for all hours worked including sleepovers. 

“It also rightly recognises the critical role social care workers have played in looking after vulnerable adults in Edinburgh.  Unite will continue to campaign for a national care service and Fair Work across the whole sector.”