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To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the increase in the National Living wage announced by the Government on 31 December 2019, what discussions she is having with private sector companies undertaking facility management work for her Department to ensure that the cost of wage increases for their employees are not passed on to her Department.
We value the work of all staff, whether employed directly by the Department or employed by our contractors. All staff employed by our facilities management contractor are already paid above the rates of the National Living Wage for 2020.
Our facilities management contract is sourced from the Crown Commercial Service Framework and reviewed annually in line with the Consumer Price Index and is not linked to any increase in the National Living Wage.
In order to ensure value for money to the UK taxpayer, a fixed fee formula is used. The fixed fee means that any significant cost changes beyond the annual Consumer Price Index are negotiated with the contractor to ensure the financial viability of the contract and value for money. We have set contractor pay rates following this process.