Fair Work Action Plan: indicator report 2026
Report setting out the most recent data available for the Fair Work Action Plan's (FWAP) medium-term indicators. These are used to monitor progress towards the outcomes set out in the FWAP.
5. Fair Work is embedded in public sector financial support
Key findings
- The proportion of regulated contracts awarded by public bodies that contain a scored Fair Work First criterion increased from 25% in 2019/20 to 54% in 2023/24.
- The requirement to pay the real Living Wage to workers involved in the delivery of Scottish Government contracts came into force in October 2021 and in 2022/23 95% of suppliers with a live Scottish Government contract have committed to pay the real Living Wage.
- Partial data is available on numbers of discretionary grants issued by public sector organisations across Scotland. Between April 2025 and March 2026, public sector organisations across Scotland awarded 5,720 discretionary grants with Fair Work First conditionality applied, with a combined value of nearly £4.0 billion. Of these, 278 exceptions were approved for discretionary grants totalling £577.7 million.
Available indicators
- Regulated contracts with Fair Work First criteria
- Grants awarded with Fair Work First criteria
5.1 Regulated contracts with Fair Work First criteria
This indicator draws from the Public Sector Annual Procurement Activity Report (regulated contracts) and SG Procurement Annual Report (suppliers and real Living Wage).
Impact on Fair Work: Attribution
According to Annual Procurement Activity reports, the proportion of regulated contracts awarded by public bodies that contain a scored Fair Work First (FWF) criterion has increased between 2019/20 to 2023/24, from 25% to 54%, Table 1.
It is the responsibility of the individual public bodies to consider whether it is relevant and proportionate to include Fair Work First criteria in all regulated procurement exercises.
| Year | 2019/20 | 2020/21 | 2021/22 | 2022/23 | 2023/24 |
|---|---|---|---|---|---|
| No. of regulated contracts including FWF criteria | 1,008 | 1,700 | 1,645 | 2,889 | 3,116 |
| No. of public bodies awarding contracts with FWF criteria | 84 | 95 | 101 | 106 | 111 |
| Percentage of all regulated contracts | 25% | 42% | 44% | 41% | 54% |
Source: Scottish Government, Annual Report on Procurement Activity, 2019/20 to 2023/24, The Scottish Government
The requirement to pay the real Living Wage to workers involved in the delivery of Scottish Government contracts came into force in October 2021. This only applies to contracts where Fair Work First practices, including payment of the real Living Wage, are relevant and proportionate. Around the time of implementation the proportion of suppliers with a live Scottish Government contract who have committed to pay the real Living Wage rose from 94% in 2021/22 to 95% in 2022/23. Data has not been collected for subsequent years.
5.2 Grants awarded with Fair Work First criteria
There is currently no central grant monitoring function within the Scottish Government. However, the Scottish Government has undertaken data gathering exercises to understand the use of conditionality and the approval of exceptions.[15] The most recent data can be drawn from – Fair Work First: Grants Awarded – 2025 to 2026.[16]
This data does not represent a complete picture of all grants awarded by public bodies as the tables show data from survey respondents only. Fair Work First conditionality does not apply to grant in aid / non-discretionary grant funding so the value of this funding is not included. Also, as public sector organisations in receipt of grant funding from the Scottish Government may use this to award further grants the overall value of grants awarded may include some double-counting.
Impact on Fair Work: Attribution
In addition to the Scottish Government and the 32 local authorities, this request was sent to 132 public bodies. A total of 94 individual responses were received, including from individual Scottish Government directorates, 27 of which reported a nil return.
Based upon the information available, public sector organisations across Scotland awarded 5,720 discretionary grants with Fair Work First conditionality attached between April 2025 and March 2026, Table 2. These grants had a combined value of nearly £4 billion. The majority of approved exceptions awarded were found to be for only part of the workforce (265) with a small number of exceptions received for the whole workforce (7) or unknown (6).[17]
| Category | Number | Value (£ millions) |
|---|---|---|
| Grants awarded | 5,720 | £3,982 |
| Exceptions to the real Living Wage condition approved | 278 | £577.7 |
| Declined exception requests | 4 | Not applicable |
Source: Fair Work First: Grants Awarded – April 2025 to March 2026, The Scottish Government