An MSP has begun consultation on a proposed Bill to require private sector employees working on public sector contracts to be paid the ‘living wage’. The Bill would also require the Scottish Government to prepare and report to the Scottish Parliament on a strategic plan to promote the living wage.

John Park’s proposal aims to ensure that businesses benefiting from public sector contracts pay a living wage to employees engaged in the relevant contract. The living wage is defined in the consultation document as £7.20 per hour, based on the costs of a range of goods and services representing the minimum income standard for people in different household types across the UK.

The Scottish Government has already provided that those directly employed by it and the NHS are paid a living wage as a minimum. Around 15,000 workers are estimated to have benefited as a result. But it has said EU law prevents it from making payment of the living wage a requirement on public service contractors.

The deadline for consultation responses is 3 December 2012.

Source: John Park MSP, Living Wage (Scotland) Bill: A Consultation, Scottish Parliament, TSO
Links: Consultation document | BBC report