Public bodies (“contracting authorities” for the purposes of the procurement rules) and businesses bidding for public sector contracts all need to be aware of this. Going forward (and many contracting authorities have been doing this for some time) the Scottish Government is requiring bidders for its contracts to pay the Real Living Wage.  

But how far down the supply chain does this obligation extend (if a bidder is part of a consortium or has a sub-contracting arrangement in place or is sourcing goods or services from a third party?) It will be interesting to see how procurement practitioners (and their contracting authorities) incorporate this requirement going forward.  Although not a legal requirement for all contracting authorities, the persuasion and leadership of the Scottish Government is likely to be significant. 

Contracting authorities will require to consider how they assess payment of the Real Living Wage – as part of selection or award criteria – and also, how far down the supply chain they are willing (and able in terms of the procurement rules and operational capacity) to look. It is also an important issue for those businesses looking to supply to the Scottish Government and the wider public sector.   

Can you demonstrate compliance with the Real Living Wage yourself and in your supply chain? With ever-increasing emphasis being placed on ESG, this issue is going to be with us for some time!