Procuring the Living Wage for the Social

Care Workforce

Judith Midgley, CCPS Workforce Associate and Des Loughney,

Secretary, UNITE Edinburgh Not for Profit Branch

What is the Living Wage?

Living Wage in Scotland is £7.65 per hour.

The National Minimum Wage is £6.31 per hour for those aged 21 and over.

Impact of the Living Wage?

A 25% fall in absenteeism 80% of employers believe that the Living Wage has

enhanced the quality of the work of their staff 66% of employers reported a significant impact

on recruitment and retention within their organisation

70% of employers felt that the Living Wage had increased consumer awareness of their organisation’s commitment to be an ethical employer.

Procurement and the Living Wage

The Legislation

Procurement Reform (Scotland) Act (2014)

European Directives on Public Procurement (2014)

Procurement Reform Bill (2013)

Guidance on Workforce Matters

Statutory guidance to be issued on how workforce matters can be taken into account in procurement decisions

(SG Amendments 9 & 10)

13th May 2014

CCPS Position

Downward pressure on terms and conditions due to:Tendering/retenderingFailure by contracting authorities to apply inflationary upliftsBudget cutsLed to voluntary organisations not being able to pay living wage

CCPS Position: Danger!

CCPS Position : Guidance

Reward and recognition is secured for the voluntary sector workforce through CCPS working with SSSC and Scottish Care on low pay to influence the drafting of the procurement guidance on workforce matters.

Enforcement of Guidance?

Financial Implications for CCPS members?

Depends on two key factors:Robustness of monitoring and enforcement activity, andThe degree to which commissioning and procuring authorities recognise and pay for the essential costs over and above staff wages.