Schools and trusts
Is that cleaning bid too cheap? Checking hours and wages against the Living Wage
By the Long Lever team · 7 min read · Last checked 6 November 2026
The short answer
Multiply the hours each bidder offers by the minimum wage they'll have to pay, and compare it with their price. If wages alone take up almost all of the price, there isn't enough left for employer costs, holiday pay, materials, supervision and profit, and the bid is unlikely to be deliverable without cutting hours or quality.
Why do cheap cleaning bids cause problems?
Because cleaning is mostly labour, and the wage floor is set by law. If a price doesn't cover the wages for the hours promised, something has to give: fewer hours on site than the bid said, higher staff turnover, missed periodic work, or a contractor asking for more money a few months in. The school pays for it in cleanliness, complaints and management time.
What are the wage rates to check against?
| Rate | Hourly | Applies |
|---|---|---|
| National Living Wage (21 and over) | £12.71 | From April 2026 |
| National Living Wage (21 and over) | £13.21 | From April 2027, confirmed by the government |
| Real Living Wage (voluntary, UK) | £14.10 | 2026-27 rate; accredited employers have until 1 May 2027 |
| London Living Wage (voluntary) | £15.45 | 2026-27 rate; accredited employers have until 1 May 2027 |
Use the rate that will apply during the contract, not today's. A contract starting in September 2026 will pay £13.21 from April 2027. If your trust is a Living Wage employer, or requires contractors to pay the real Living Wage, use that rate instead.
How do you do the check?
- Take the total annual hours each bidder offers: term-time hours per week × term weeks, plus holiday hours.
- Multiply by the wage rate that will apply. This is the wage floor.
- Divide the wage floor by the annual price. This is the share of the price taken by basic wages.
- Look at what's left. It has to cover employer National Insurance, pension contributions, holiday pay, sickness and cover, materials and equipment, supervision, management, insurance and profit.
Remember that staff on term-time contracts are still entitled to paid holiday. A bid that prices only the hours worked, with nothing for holiday pay, is missing a real cost.
A worked example
Long Lever Academy, a fictitious secondary school outside London. Two bidders both offer 95 hours a week for 39 term weeks, plus 120 holiday hours: 3,825 hours a year. From April 2027 the wage floor is 3,825 × £13.21 = £50,528.
| Bidder A | Bidder B | |
|---|---|---|
| Annual price | £58,000 | £78,000 |
| Basic wages at £13.21 | £50,528 | £50,528 |
| Wages as a share of price | 87% | 65% |
| Left for all other costs and profit | £7,472 | £27,472 |
Bidder A has about £7,500 a year to cover employer National Insurance, pensions, holiday pay, cover, materials, supervision, management and profit. That isn't realistic for this many hours. Bidder B may not be the right choice either, but its price can at least pay for what it promises.
What does the Procurement Act say about abnormally low bids?
Under the Procurement Act 2023, an authority may disregard a tender whose price it considers abnormally low for performing the contract, but it must first tell the supplier, give it a reasonable chance to show it can deliver at that price, and assess the answer. A low price isn't automatically abnormal; the supplier may have genuine efficiencies. Record your reasons and the evidence either way.
Even below the thresholds where the Act applies in full, following the same steps is good practice and makes your decision far easier to defend.
What this won't do
This check finds bids that can't pay for what they promise; it doesn't prove that a higher bid is good value. Hours offered also need checking against the size of the building and the frequencies you set. And it isn't legal advice: if you're thinking of rejecting a bid as abnormally low, follow your trust's procurement rules and take advice where needed.
Questions people also ask
What is the National Living Wage in 2026 and 2027?+
£12.71 an hour for workers aged 21 and over from April 2026, rising to £13.21 from April 2027, as confirmed by the government in October 2026.
What is the London Living Wage for 2026-27?+
£15.45 an hour, with the real Living Wage outside London at £14.10. These are voluntary rates set by the Living Wage Foundation; accredited employers have until 1 May 2027 to pay them.
How do I know if a cleaning tender is too cheap?+
Multiply the annual hours offered by the wage that will apply, and compare it with the price. If wages take up most of the price, there won't be enough left for employer costs, holiday pay, materials, supervision and profit.
Can a school reject an abnormally low tender?+
Under the Procurement Act 2023, an authority may disregard an abnormally low tender, but only after asking the supplier to explain and assessing its answer. Keep a record of the decision and the reasons.
Sources
- GOV.UK: LPC recommendations take the National Living Wage to £13.21
- CIPP: Real Living Wage rates for 2026-27
- GOV.UK: The Procurement Act 2023, abnormally low tenders
Facts and rates last checked 6 November 2026. We review every article at least every six months.
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