Government announces new criteria for public sector grants

New rules from today will mean organisations applying for public sector grants will have to pay staff the real Living Wage.

In addition, applicants will also have to show they provide ways for workers to have an “effective voice” within the organisation.

The new rules have been introduced as part of the Bute House Agreement, the deal between the SNP and Greens which brought the latter party into government at Holyrood for the first time.

With the previous criteria having been applied to some £4 billion of public funds, Wellbeing Economy and Fair Work Secretary Neil Gray said extending the requirements would help the government “better tackle the cost crisis, poverty and social inequalities”.

He stated: “Public sector funding should be used for the wider benefits needed in a wellbeing economy, such as the promotion of fair work – including the creation of more high-quality, well-paid jobs.

“This in turn will support stronger businesses, and vibrant, healthy communities.”

Green skills, circular economy and biodiversity minister Lorna Slater said research has shown that firms where employees have a stronger voice “perform better and are more productive”.

She stated: “We will work with employers, workers and trade unions connected to organisations applying for a public sector grant to ensure we are continuing to improve terms and conditions, worker wellbeing and to develop progressive and fairer workplaces.”