Current status: Answered by Ivan McKee on 24 June 2025
To ask the Scottish Government how many of its grant agreements exclude employment costs arising from the grantee’s legal obligations to its employees, including parental leave, sick leave and redundancy, from eligible costs, and how many of any such grant agreements are with voluntary organisations.
Scottish Government Grants are subject to legally binding agreements. A model offer template is in place which includes terms and standard conditions and schedules covering claims and payments. The exclusion of employment costs forms part of clause 2.7 of the grant offer letter template and is a standard term for all discretionary grants. Employment arrangements of an organisation are a matter for that organisation.
Internal SG guidance requires that all costs must be specific to the delivery of the grant’s purpose therefore employment costs related to the job role of grant delivery are expected. Specifically excluded costs as noted in this clause relate to those which are reclaimable from HMRC. It is for the business area to make local decisions for their grant, the Scottish Government does not store these grant agreements centrally therefore the recording and retention of grant agreements is the responsibility of local business areas.