Source · Select Committees · Energy Security and Net Zero Committee
Recommendation 25
25
Accepted in Part
Publish thorough impact assessment before mandating skilled labour in clean energy retrofit procurement
Recommendation
The Government should carry out and publish a thorough impact assessment before deciding to use conditionality as a policy lever in procurement to mandate skilled labour requirements in contracts for clean energy retrofit works in public sector buildings. (Recommendation, Paragraph 97)
Government Response Summary
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; it will not require the publication of an impact assessment.
Government Response
Accepted in Part
HM Government
Accepted in Part
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.