We recognise, however, that paying the real living wage can be really difficult for businesses who are tendering for work where the real living wage is not mandated as part of the contract. In order to compete effectively, they need to bid at the market rate of national living wage.  Some businesses may do this and still guarantee the real living wage to their staff, but this means they will run that contract at a loss.  We appreciate this is not sustainable in large numbers, however much that individual business cares about payment of the real living wage.

Recognised Service Providers, as established by the Living Wage Foundation, pay all their directly employed staff that are not tied to client contracts the real living wage. For those employees tied to client contracts, they commit to submit a real living wage bid alongside the market rate they provide.  This means the client always has the choice to implement the real living wage at the point of tender.

We want to recognise the commitment of Recognised Service Providers to the real living wage, and their leverage with clients to seek to make this the established pay rate. Therefore, we welcome them because of their genuine commitment to paying the real living wage and will allow them to receive Good Business Charter accreditation on these grounds.