Question to the HM Treasury:

To ask the Chancellor of the Exchequer, with reference to the increase in the National Living Wage announced by the Government on 31 December 2019, what discussions he is having with private sector companies undertaking facility management work for his Department to ensure that the cost of wage increases for their employees are not passed on to his Department.

Facilities and building management services are provided to the Treasury under a 35-year PFI Agreement with Exchequer Partnerships. The cost of these services, which are delivered by Exchequer Partnership’s subcontractors, is included in the Unitary Payment.

The Unitary Payment is uplifted annually by indexation. There is no mechanism under the PFI Agreement to allow Exchequer Partnerships to increase the Unitary Payment as a result of an increase to the National Living Wage, therefore no such discussions have taken place.