1. To ask the Scottish Government how it is promoting the living wage as part of its anti-poverty strategy. (S4O-03741)

The Scottish Government fully supports the living wage campaign and recognises the difference that the living wage can make to the people of Scotland. That is why we have funded a pilot by the Poverty Alliance with the aim of increasing the number of employers across all sectors in Scotland that pay the living wage. I am pleased to note that, since the pilot was launched in April, the number of living wage-accredited employers has tripled.

In addition, we are leading by example by ensuring that the living wage is a key part of the Scottish Government’s public sector pay policy. Although the Scottish Government cannot set pay levels in the third sector—or in the private sector and the wider public sector, where employees are not covered by our pay policy—we actively encourage all organisations to ensure that all staff on lower incomes receive a fair level of pay. Through that, we seek to maximise household resources to tackle poverty and reduce inequality across Scotland.

Bluebird Care in South Lanarkshire has recently become one of the first care providers in my region to be recognised as a living wage employer. It expects the benefits to its business to include improved staff morale and better levels of worker retention.

Regardless of whether power over the minimum wage is devolved to Scotland, does the Scottish Government agree that nothing prevents it from promoting the benefits of the living wage to employers in sectors in which work might be low paid or insecure? If so, does it agree that it could promote the living wage by establishing a living wage unit and introducing a living wage strategy?

I am pleased to hear of the organisation in Margaret McCulloch’s region that has adopted the living wage and I absolutely concur with what she said about the benefits of any employer paying their staff the living wage. It creates better productivity and values the workforce.

I say to Margaret McCulloch that the fact that we now have a Cabinet secretary one of whose main responsibilities is the living wage clearly indicates the Government’s position. We funded the Poverty Alliance to initiate the campaign to promote the living wage and continue to do so. As I said, the Scottish Government pays all its employees at least the living wage and has now managed to negotiate a contract with those who provide it with catering and other services also to pay the living wage. We are and will continue to be absolutely committed to the living wage and to working towards it.

I accept the positive things that have been said about the living wage, but does the Minister accept that it is always second best, because it is voluntary, and that it would be better if we had control of the statutory minimum wage?

I agree with John Mason. The issue featured in the Scottish Government’s submission to the Smith commission. We believe strongly that having power over the minimum wage is the way forward. We also said in the white paper that we could increase the minimum wage in line with inflation, which United Kingdom Governments have failed to do. Had they done so, our low-paid workers would already be £600 a year better off. We certainly want the power to set the minimum wage to be given to Scotland.

It is important to focus on the areas for which the Government has responsibility now. Labour recently highlighted the case of Mitie cleaners at Atlantic Quay—a Scottish Government location. I welcome the fact that the Government has moved on that and will seek to ensure that those cleaners are paid the living wage. Will that policy be extended to other cleaners in the public sector—for example, Serco cleaners in the national health service?

I said clearly that the Government is committed to the living wage, to ensuring that it is paid to all public sector employees for whom the Government is responsible and to working towards our programme to promote good working conditions throughout the Scottish Government and its subcontractors.

I make it clear to the Parliament and the country that we are absolutely committed to the living wage, which is why we want to have statutory powers over the minimum wage in Scotland. That would enable us to increase the minimum wage in line with inflation until we did not require to have the living wage.