Impact of government contracts on third sector

The Third Sector Research Centre has published a report assessing the impact government contracts have on the ability of third sector organisations to provide their workforce with acceptable conditions and services.

The research studied 655 social economy organisations across eight countries and looked at their contribution to job creation, quality of employment, and their role in working with vulnerable groups.

Key findings from the report include that competition with the private sector and the low financial package offered by government contracts means organisations are forced to reduce costs to a point where they are unable to afford to pay minimum wage or offer job security to employees.

The report also included recommendations from third sector organisations, including longer term contracts to help them provide job security and government help to meet the cost of the social value they have created. 

For further information and to download the full report visit www.tsrc.ac.uk/NewsandEvents/Governmentsmustenablelivingwage/tabid/1007/Default.aspx.