3. Ms Ferguson asked the Minister of Finance for an update on the New Decade, New Approach (NDNA) commitment for the Executive to become a living wage employer. (AQO 2741/17-22)

I was delighted to announce at an event this morning that the Living Wage Foundation has now formally accredited the Executive as a living wage employer. While that fully delivers on the NDNA commitment, my Department has gone further by introducing a new wider procurement policy that will see the living wage included as a condition of contract for tenders from June 2022. Furthermore, my officials are discussing with the foundation how we can support its campaign to encourage more employers to pay a living wage.

Thank you, Minister, for your answer. You will be aware of the invaluable role that our domiciliary care workers have played in supporting our most vulnerable people and our elderly people, particularly during COVID. Despite that, they are often paid the minimum wage. Will the living wage policy apply to them?

The Executive's living wage accreditation that was announced today applies to the Civil Service. We are encouraging and working with all public-sector organisations to make sure that that rolls out through the public sector generally. Care workers do an absolutely invaluable job. If that was not recognised before, it has certainly been recognised over the course of the pandemic. As you said, many of them are being paid the minimum wage.

As part of the procurement rules for new contracts, which we have changed, from June 2022, anyone who secures a government contract under which they would be employed by various trusts will have to pay their staff the Living Wage Foundation living wage. That will be a substantial hourly increase for those workers. Today's announcement is not just good news for civil servants and public-sector workers; as we roll on into this and continue to do work on the living wage, it will also be good news for thousands of workers. Of course, a whole range of anti-poverty measures are needed. The Executive will have a role across all of those to try to ensure that people here enjoy a decent standard of living, particularly in the time of this cost-of-living crisis.

Minister, we have seen a sharp rise in energy prices and the cost of living. You set out your reasons for not taking action on the universal credit cut, but will you urgently convene a cost-of-living task force with the Economy and Communities Ministers to explore what more can be done to support people this winter?

First, I correct the Member: the decision on universal credit was taken by the Executive and not by me. Members, from your party in particular, often credit me with more powers than I have. If you ever have a proposition to give me more powers, I will be very happy to receive it.

The reality is that that decision was taken by the Executive. I am very happy to work with other Ministers, in recognition of the fact that there is a cost-of-living crisis and that increased costs, particularly for energy and food, are very real for very many families. There was to be a dedicated discussion on that to see what all the parties can bring to the table. The Communities Minister has very much been pressing for that discussion. I am very happy to play my part if there is a proposition about that.

Thank you, Finance Minister. I go back to your last answer about the awarding of contracts. Will that include the community and voluntary sector, which is in receipt of government grants?

We are looking at that issue again. We had a discussion at the event this morning. That was not just a launch. We had a discussion with people from that sector. There is recognition that a lot of the contracts provided by the community and voluntary sector are very location-specific. Those organisations know the geography and the people of the area that they are dealing with, and there is often not enough recognition of them, with contracts being awarded to larger firms that can simply come in with a lower cost.

There is recognition. Measures will be included within procurement to ensure that we recognise that the community and voluntary sector can provide a more effective service to local communities. Whether it is done through a tender process or a grant process, we have to ensure that the flexibility that already exists for the way that Departments approach this is followed through, making sure that services in localities are provided by people who have experience in and knowledge of those localities.

Has the Minister factored the national living wage into future departmental spending? If so, what is the impact?

Yes, and we will have to do that. One of the leading officials at the event this morning said that there is a cost attached to this but that it is the right thing to do. The Living Wage Foundation wage has gone up in the last day or so, so that will increase the cost, but it was in the region of a small number of millions of pounds in overall terms of our budget. That is for the total number in the Civil Service. Once you get out into the broader public service, that increases. There are all sorts of implications for public finances of people living in poverty, which include for education and health, and, if we want to lift people out of poverty, we have to recognise that we need to adopt those standards. It is the right thing to do. It is not a very substantial cost on the public purse in broad terms, but it can have the effect of reducing dependency on other public services.