Fair Work First - conditionality in public sector grants: business and regulatory impact assessment

Footnotes

1 Note, this criterion was updated in November 2024 to better reflect workplace equality issues and has been amended to: address workplace inequalities, including pay and employment gaps for disabled people, racialised minorities, women and workers aged over 50.

2 Note, that updated Fair Work First Guidance was published in November 2024 and includes minor amendments to the wording of the rLW condition

3 For the real cost of living | Living Wage Foundation

4 National Minimum Wage - Low Pay Commission Report 2023 (publishing.service.gov.uk)

5 National minimum wage and national living wage rates

6 What is the real Living Wage? | Living Wage Foundation

7 Skills Development Scotland (2024). Annual Report and Financial Statements for the year ended 31 March 2024

8 National Minimum Wage and National Living Wage rates - GOV.UK (www.gov.uk)

9 SNIJIB (2024). SNIJIB graded rates of wages and allowances agreement 2024/2025

10 SJIB National Rates & Allowances 2024 | SJIB.org.uk

11 Living Wage Employers: Evidence of UK Business Cases | Living Wage Foundation

12 Generated from the National Records of Scotland’ data tables for Scotland’s 2022 Census

13 This analysis was undertaken prior to the new rLW rates being announced in October 2024

14 Employing an apprentice: Pay and conditions for apprentices - GOV.UK (www.gov.uk) Apprentices are entitled to the national minimum wage for their age group if they are over 19 and have completed the first year of their apprenticeship. For example in 2023/24, a 21-year-old in the first year of their apprenticeship is entitled to a minimum hourly rate of £6.40 (Apprentice Rate), but a 21-year-old who has completed the first year of their apprenticeship would be entitled to a minimum hourly rate of £11.44 (the National Living Wage).

15 Employees aged under 21 years old are covered by National Insurance Category M. National Insurance rates and categories: Contribution rates - GOV.UK (www.gov.uk)

16 Workplace pensions: Joining a workplace pension - GOV.UK (www.gov.uk)

17 National Minimum Wage and National Living Wage: updated Low Pay Commission remit 2024 - GOV.UK

18 How has the NLW affected pay differentials within firms? | Institute for Fiscal Studies

19 National Minimum Wage - Low Pay Commission Report 2023

20 Note, that updated Fair Work First Guidance was published in November 2024 and aims to simplify and streamline the administrative processes around confirming and evidencing compliance with the Fair Work First conditions, including clearer guidance on the role for trade union or worker representative as part of this.

21 Supporting documents - Fair Work First guidance - gov.scot (www.gov.scot)

22 Fair Work First: grants awarded - July 2023 to March 2024 - gov.scot

23 ONS (2024). Business Register Employment Survey data. Available at: <Region by broad industry group (Standard Industrial Classification) – Business Register and Employment Survey (BRES): Table 4 - Office for National Statistics)>

24 UK level estimates are not available for 2023 at time of publication.

25 ONS (2024). Business Register Employment Survey data. Available at: <Broad Industry Group (Standard Industrial Classification) – Business Register and Employment Survey (BRES): Table 1 - Office for National Statistics (ons.gov.uk)>

26 Scottish Government (2024). Business in Scotland 2024. Available at: <Businesses in Scotland: 2024 - gov.scot>

27 Scottish Government (2024). Businesses in Scotland 2024. Available at: <Businesses in Scotland: 2024 - gov.scot>

28 Scottish Government (2024). Businesses in Scotland 2024. Available at: <Businesses in Scotland: 2024 - gov.scot>

29 Scottish Government (2024). Businesses in Scotland 2024. Available at: <Businesses in Scotland: 2024 - gov.scot>

30 ONS (2024). Annual Population Survey data for Scotland and the United Kingdom, taken from ONS. Available at: Nomis - Official Census and Labour Market Statistics (nomisweb.co.uk)

31 ONS (2024). Annual Population Survey data for Scotland and the United Kingdom, taken from Nomis. Available at: Nomis - Official Census and Labour Market Statistics (nomisweb.co.uk)

32 Earnings and hours worked, UK region by industry by two-digit SIC: ASHE Table 5 - Office for National Statistics (ons.gov.uk), Table 5.6a

33 Earnings and hours worked, UK region by industry by two-digit SIC: ASHE Table 5 - Office for National Statistics (ons.gov.uk), Table 5.6a

34 Earnings and hours worked, UK region by industry by two-digit SIC: ASHE Table 5 - Office for National Statistics (ons.gov.uk), Table 5.6a

35 Earnings and hours worked, UK region by industry by two-digit SIC: ASHE Table 5 - Office for National Statistics (ons.gov.uk), Table 5.6a

36 Annual survey of hours and earnings: 2023 - gov.scot

37 Twenty years of the Living Wage - The Employer Experience | Living Wage Foundation

38 Scottish Government analysis of ONS Annual Survey of Hours and Earnings data, 2024. - Data not available as estimates are below reliability threshold due to small sample size or no people were recorded in this category in the survey.

39 Trade union statistics 2023 - GOV.UK (www.gov.uk)

40 Trade union statistics 2023 - GOV.UK (www.gov.uk)

41 Trade union statistics 2023 - GOV.UK (www.gov.uk)

42 Trade union statistics 2023 - GOV.UK (www.gov.uk)

43 Measuring progress - Fair Work and Business | National Performance Framework

44 ONS Annual Population Survey, January to December 2023.

45 Modern Apprenticeship Statistics, up to the end of Q4 2023/24 (skillsdevelopmentscotland.co.uk)

46 Employer Skills Survey 2022: Scotland Report

47 SNIJIB (2024). SNIJIB graded rates of wages and allowances agreement 2024/2025

48 SJIB National Rates & Allowances 2024 | SJIB.org.uk

49 SBATC Apprentice Rates of Pay 2024

50 Scottish Agricultural Wages Board. Agricultural wages: guide for workers and employers - twenty eighth edition - gov.scot (www.gov.scot)

51 Scottish Agricultural Wages Board. Agricultural wages: guide for workers and employers - twenty eighth edition - gov.scot (www.gov.scot)

52 Fair Work in Modern and Graduate Apprenticeships - Final Report (www.gov.scot)

53Small Business Survey Scotland: 2022-2023 - gov.scot (www.gov.scot)

54 Small Business Survey Scotland 2022 – 2023 - Tables