In summary, at this stage, the extended conditionality applies to grant funding only, although it is expected that it will be extended to other forms of support in due course.
Any grant agreed on or after 01 Jul 2023 must state that funding cannot be released until the grant maker is satisfied that a recipient organisation is paying all of its staff the Real Living Wage including apprentices and employees under 18 years of age.
Recipient organisations must also demonstrate both collective & individual voice, unless the organisation has fewer than 21 employees, & then the SG will accept evidence of individual voice only.
This conditionality will also extend to the supply chain, such that any external contractor or organisation connected to the project will also need to pay all of their staff the Real living Wage and be able to demonstrate collective voice. It will be up to grant makers to collect the supporting evidence.
There are two areas of exclusion:
The agriculture Industry until 01 April 2024;
Any organisation which can prove that a requirement to pay Real Living Wage will place them into financial jeopardy.