Chamber and committees

The Draft Budget continues to recognise the critical role that the third sector plays in supporting the delivery of key services in Scotland’s communities. We are keenly aware of the pressures on the third sector at this time. The financial environment is extremely difficult while demand for services is increasing. Additionally, Fairer Funding is part of a series of steps to address this difficult financial environment within Scottish Government funding for third sector organisations.

(a) Regarding Fair Work First conditionality, the Scottish Government has sought to implement these principles across all government portfolios, updating grant obligations to meet the new conditionality requirements from July 2023. Monitoring compliance with Fair Work First principles, including the requirements to pay workers at least the real Living Wage and provide appropriate channels for effective voice, is the responsibility of individual grant managers across government and of relevant funders across the wider public sector. It takes place within existing grant assurance and monitoring processes, as with any other condition of grant, such as agreed outcomes.

Where exceptions to the mandatory grant requirements are applied, grant managers are asked to record these. This information will be requested and collated at the end of the financial year.

(b) It is for individual grant-makers and funders to determine the value of individual grants within their overall budget limitations. Real Living Wage conditionality is concerned with uplifting low pay workers to at least the real Living Wage. Any further pay increases an employer wishes to introduce above and beyond this will be a matter for the employer concerned.