Public procurement: a powerful tool for workers’ rights and a fairer economy

Too many workers across the UK are struggling in low-wage, insecure jobs with conditions that risk their health and well-being. The result? A workforce stretched to the breaking point, and communities bearing the weight. But there’s a way to begin to change this: public procurement.

Every year, £390 billion in public money flows into public contracts that touch every sector. By using this power wisely, public authorities can drive fair wages, good working conditions, and real opportunities for workers across the country. A new Labour Government opens up new opportunities for trade unions to get more closely involved in procurement.

Community works in partnership with Aspire Community Works and support its BetterForUs campaign which is built on five key principles:

1. Respect for workers in essential roles such as cleaning, maintenance, and care work.
2. Decent Pay with the Real Living Wage as a minimum standard in all public contracts.
3. Good Work by ensuring that all contracts include fair working conditions.
4. Sustainable Procurement aligned with sustainable development goals, maximizing community value.
5. Employee Voice to involve workers in shaping the services and workplaces they contribute to.

Aspire’s recent report ‘Public Good Procurement’ (October 2024), published as part of our BetterForUs campaign lays out some key steps that can be taken for turning public procurement into a force for economic fairness including:

Real Living Wages as the standard

Every public contract should pay workers a Real Living Wage. This isn’t just a wage—it’s a lifeline. Paying fair wages lifts people out of poverty, boosts local economies, and ensures that the workers keeping our public services running don’t struggle to make ends meet. By setting this wage as the minimum, we raise the bar for all employers, showing that the public sector is committed to valuing its workers.

Good Jobs for public contracts

The days of public funds supporting bad employers should end. Aspire’s report calls for good job standards on every public contract, ensuring that jobs come with secure hours, safe conditions, and a commitment to worker well-being. We know that bad jobs don’t just harm workers—they harm communities by driving up demand for healthcare and support services. It’s time to set a new standard.

Investing in local Economies and good work

Public procurement should be used to build local economies, not drain them. Research from Aspire shows that if just 1% of procurement spending was invested in social enterprises and local businesses dedicated to hiring disadvantaged workers, £3.9 billion would flow into our local communities, providing an alternative model to the private sector to help people back into and to retain jobs. Public contracts should support local organisations that invest and support their communities,  rather than sending profits out of reach.

Take action: raise your voice in the NPPS survey

The Government has the opportunity to shape public spending for the long term future. It is currently preparing its National Procurement Policy Statement prior to the introduction of new laws governing public spending in February 2025.

The Government is asking for input through a National Procurement Policy Statement (NPPS) survey. This is a crucial moment to demand that public spending goes toward Real Living Wages, safe jobs, and contracts that support communities. By speaking up, we can ensure that public money works for workers, not just the wealthiest few.

How You Can Help

• Call for Real Living Wages: Every public contract should pay workers enough to live on.
• Demand Good Working Conditions: Jobs funded by the public must guarantee safety, security, and respect.
• Push for Contracts that Support Communities: Let’s reserve at least 1% of public contracts for social enterprises and organisations that reinvest in workers and local areas.

You can access the Government survey here or make your views known by emailing procurement.reform@cabinetoffice.gov.uk.

Contact your local MP to  make your views known. You can find out who your local MP is here.

At Community, we’re committed to creating a better world of work, and public procurement can play a key role in this mission. This is our chance to ensure public funds drive fair wages, secure jobs, and stronger communities for everyone. Take action, get involved, and let’s make public procurement a force for good.

Together we can make public procurement a force for good that lifts people up and build a better future for all.