Recommendation 20

HM Government · verbatim extract Accepted

As outlined in the Warm Homes Plan, the government intends to ensure that fair work, skills and sustainable supply chain requirements are considered by default in commercial contracts and grants, where it is feasible and appropriate to do so. This aims to ensure that there is a greater focus by suppliers and grant recipients on supporting longer-term commitments in areas such as skills and the creation of good-quality jobs when delivering goods and services through public funding. The government partially agrees with this recommendation. The government recognises the importance of understanding and considering the impacts of grant funding and procurement regimes at the point of design, including impacts on protected groups and businesses, value for money and effective targeting of support. Departments are already required to have due regard to equality considerations when exercising their functions, and to undertake appropriate analysis to inform ministerial decision making. However, in line with the Better Regulation Framework Guidance set out by the Department for Business and Trade, the use of conditionality within procurement or grant funding frameworks would not be within scope of requiring the publication of an impact assessment. The integration of conditionality will be carefully considered on a case-by-case basis to ensure it is appropriate and proportionate for the relevant market and supply chain, having regard for the nature of the funding lever and the wider context in which it is introduced. Where it is decided conditionality will be integrated into a government programme, the government will clearly communicate the rationale and design approach.