The law on whether or not it is permissible to impose “living wage” rather than “minimum wage” provisions on contractors performing public contracts has long been an area of controversy (see Practice note, PCR 2006: Sustainable procurement; Workforce matters).
The Chancellor announced in his 2015 Budget Speech that there would be new measures to improve compliance with the national minimum wage and, that there would be a new “national living wage” from April 2016, which essentially proposes increasing the statutory minimum wage. Nevertheless, this has not taken the heat out of the debate, particularly for contracts in London and the South East where living costs are significantly higher. Continue reading