1. Questions to the Minister for Social Justice – in the Senedd on 6 July 2022.
1. How is the Government promoting fair pay for workers in the third sector? OQ58319
The impact of the cost-of-living crisis on the third sector and its workforce was discussed at the most recent meeting of the third sector partnership council. In addition, we are committed to and continuing to work in social partnership and use our wider levers to promote fair pay in the third sector.
Thank you for that answer.
One of the problems the sector is currently having is funding fair pay settlements that reflect rises in the cost of living. This is particularly the case with organisations that have contracts with multiple public sector providers that are adopting different approaches to contract uplifts. One organisation I am aware of has contracts across many local authorities, with roughly a third giving contract uplifts, a third refusing and a third yet to decide. This puts the organisation in an impossible position of having to be fair to all staff whilst not being able to fund fair pay. Will the Welsh Government take a lead in ensuring consistent policy on contract uplifts and ensure the sector can continue to keep its valuable staff and help the most vulnerable in our society?
I thank the Member for his question and, obviously, for recognition of a sector that not only helps some of our most vulnerable in society, but also provides employment for people in communities right across the country. As I said, in the most recent third sector partnership council meeting on the cost-of-living crisis, the impact it's having on fair pay in the sector was raised, and, certainly, I and the Minister for Social Justice are happy to follow up and pick up how we can use our social partnership approach and also all the levers we do have to try and have consistency across the sector and support where support is available.
We have acknowledged some of the challenges that the sector faces in terms of not just funding for the stability of projects, but also for the stability of staff, so it's one of the reasons behind moving for the first time to a three-year grant commitment, which obviously enables better long-term planning whilst retaining staff and skills. I think it's really important, like you said, that these third sector organisations are not only providing crucial support and services, they provide really good opportunities for people to work as well and we need to be conscious of that when we move forward.
The issue that the Member for South Wales East raises is of course an important one. So too is how third sector employees and volunteers are remunerated for additional expenses that occur whilst they're undertaking their roles—for example, fuel costs. Recently, I've been contacted by the Community Transport Association, who are working with a number of charities to campaign for an increase in the approved mileage allowance payment scheme. They state that the recent increase in the cost of fuel is having a negative impact on third sector workers and volunteers, as well as making it more difficult to recruit additional staff. I understand that such an issue is not devolved, however, Minister, what discussions have you had with your counterparts in the UK Government about increasing the AMAP rates in the short term to help alleviate such issues? And what specifically is the Welsh Government doing to support third sector organisations, employees and volunteers with rising costs as well as supporting organisations to recruit and retain more staff and volunteers? Thank you.
Can I thank Peter Fox for his question? You are right to acknowledge the impact that rising fuel costs are having, not just on the third sector, but I actually heard today in a meeting with the Partnership Council for Wales about the impact it's having for people particularly in the social care sector too in travelling between people who they are looking after and caring for, as well. So, I absolutely agree with you in terms of—. I know there are calls to uplift from 45p to 55p, and that's certainly something that we, as a Government, would support and have raised previously with counterparts at a UK Government level. And, actually, it's very prescient, the timing of your question, Peter Fox, because this morning we did actually commit with partners right across local government and across the public sector in Wales, and the third sector as well, to collectively calling for an increase in that to help mitigate some of the cost-of-living impact that it's having on people who provide services that are essential, not just to people but to our communities as well.