Keith Patterson, Head of Commercial Procurement, introduced a report which provided a further summary of the work being undertaken to explore gaining accreditation with the Living Wage Foundation, following a report to the former Cabinet on 27 July, 2020 (minute 114 refers).

The requirement to provide the National Minimum Wage or National Living Wage was a statutory requirement and thus was already included in the Council’s contracts. The Living Wage Foundation was an independent organisation that recognised the leadership of responsible employers who chose to pay a Real Living Wage based on the cost of living, not just the government minimum.

The report detailed the three key reasons why it was important to pay the Real Living Wage:

·  Safeguarding workers from in–work poverty.

·  Investing in the local economy.

·  Demonstrating Civic Leadership.

It was estimated that the total cost to the Council of implementing the Real Living Wage was between £630,000 and £1.2m, (excluding care contracts) however individual contracts would be subject to discussion and would be managed according to procurement and contract management principles to deliver best value. A further report to the Committee would contain more information on those costs and the extent to which they could be mitigated.

Responding to comments from Members, Keith Patterson, stated that the set criteria for tender evaluations could not include whether or not contractors paid the Real Living Wage, though the question could be asked if they were prepared to pay the RLW, and tender documentation did emphasise that the Council was strongly in favour of the RLW and made it clear it was important to Wirral.

Philip McCourt, Director of Law and Governance, confirmed that there was nothing to stop the Council asking contractors whether or not they paid the RLW to build up a data profile, but tenders could not be scored on this criteria.

Members expressed the view that contractors should be expected to do the right thing in paying the RLW as it was a key factor in tackling low pay in the regional economy.

On a motion by the Chair, seconded by Councillor Yvonne Nolan, it was -

Resolved – That, 

(1)  the further activity undertaken in working towards accreditation to the Living Wage Foundation, be noted; and

(2)  that a further report will be submitted to the Policy and Resources Committee after further information is gathered in order to enable the Council to assess more accurately the costs and benefits of seeking accreditation from the Living Wage Foundation.