SSE: Powering good work with Living Hours
SSE plc is a leading UK-listed energy company headquartered in Perth, Scotland. It has been an accredited Living Wage Employer since 2013, and in March 2021, took another significant step as a leader in fairer, better work when it became one of the UK’s first accredited Living Hours employers. In 2023, SSE then went on to achieve triple accreditation by becoming a Living Pension employer.
We spoke with Linzi Nicol, Employee Relations Specialist, Esther Black, Head of Social and Economic Sustainability at SSE, and Maria McCartney, Social and Economic Sustainability Manager about SSE’s Living Hours journey.
Why Living Hours?
SSE’s motivation for accrediting was twofold: to publicly demonstrate its long-term commitment to tackling insecure work and to formalise its existing good work practices across the organisation.
Living Hours was a natural extension of SSE’s values. As Linzi put it, “As an accredited Living Wage employer, it just made sense that we would then take that step further and show public support for tackling insecure work through Living Hours accreditation.”
SSE also spoke of “doing the right thing” and “formalising established practice”, recognising that many Living Hours principles were already embedded across the organisation. By accrediting as a Living Hours employer, SSE provided comfort, security and reassurance for colleagues, showing its commitment to upholding high standards of good work.
How SSE achieved Living Hours
A whole‑workforce approach
While Living Hours primarily focuses on lower-paid workers most at risk of in-work poverty caused by insecure work, SSE chose to go further by extending Living Hours principles across the organisation - a decision which was “well received” and which it would “recommend to other organisations”.
This approach was driven both by values and practicality. In SSE's view, using one consistent standard was the simplest approach. It meant it did not have to keep checking which roles were covered, and it avoided employees moving in or out of coverage when their pay or job role changed. It reduced administrative burden and made communication clearer and fairer.
Turning principles into practice: operational and HR system development
SSE made practical system enhancements to ensure Living Hours was embedded in everyday operations. These steps embedded both flexibility and security into business-as-usual practice, and SSE reports that the new processes are “running smoothly”.
Four weeks' notice of shifts and an automated 12‑week hours review
SSE was already meeting the Living Hours requirement to provide at least four weeks’ notice of shifts, helping colleagues plan their lives. However, the Living Hours standard also requires contracts to accurately reflect hours worked, with a review after 12 weeks to check this alignment. A key development for SSE was automating this 12‑week review process. As Linzi explained,
“We added functionality onto our personnel system that prompts managers after the first 12 weeks to check contractual hours against average hours worked. If it's not the same, we would automatically send them a form giving the employee the option to increase their contractual hours to that average or opt out. Managers get an email from our system with the form and a clear explanation of their Living Hours obligations.”
A minimum of 16 hours
SSE followed standard Living Hours practice, committing to advertising all new jobs at a minimum of 16 contracted hours and offering an increase to all existing colleagues working fewer than this – all of whom opted to have their hours increased.
What has been the impact of Living Hours accreditation?
Positive staff engagement: Living Hours accreditation was well-received across SSE. Clear, organisation‑wide roll-out and communication led to a strong understanding and buy‑in, strengthening trust and confidence in SSE’s long‑term commitment to secure work.
Employer of choice: Along with its supportive and flexible working environment, SSE recognises Living Hours as one of many factors which helps to make it an employer of choice for the best talent in the market.
As Esther explained, “Living Hours demonstrates our commitment to good quality jobs and the security that enables people to plan their income and lives.”
Enhanced reputation and sector leadership: SSE’s Living Hours accreditation has distinguished it as a responsible employer and fair work leader within and beyond the energy sector. In 2021, SSE received a Living Wage Foundation Champion Award, recognising its leadership in implementing Living Hours across the workforce.
Sustainability and social value: Living Hours strengthened SSE’s Sustainability and social value commitments, aligning with its wider Just Transition Strategy. SSE continues to show that building a fairer, cleaner and more sustainable future starts with investing in people. As Maria put it,
“We are at the forefront of the clean energy transition in the UK and we’re focused on delivering it in a way that brings real benefits to the people powering that change. For us, that means creating jobs that are not only well paid, but also stable, secure and sustainable. By championing Living Hours, alongside Living Wage and Living Pension, we are helping ensure the transition delivers lasting value for our workforce and for workers across our supply chain.”
Policy readiness: Living Hours has also helped position SSE to respond confidently to changing employment legislation, including the recent Employment Rights Act 2025. This proactive approach supports SSE’s long-term resilience and demonstrates its commitment to responsible governance.
Extending Living Hours to third party workers: SSE’s step by step journey
Having successfully embedded Living Hours across its directly employed workforce, SSE is now committed to extending this security into its supply chain - an important step given how many essential services, including cleaning, catering and security, are often delivered by workers on outsourced contracts.
SSE’s belief is that everyone who works on behalf of SSE should be able to rely on secure and stable work. Too often, outsourced workers are left out of workplace benefits like secure, reliable hours, as they are not employed directly by the company they are working for. As a result, many do not have long-term financial security and cannot plan their lives properly.
Therefore, following Living Wage Foundation guidance, SSE has adopted a gradual, relationship‑based approach to third party implementation. This approach is focused on practical steps that build understanding and momentum and strengthen responsible procurement over time. It is currently looking at how it rolls Living Hours clauses out to its supply chain, engaging with key suppliers and working closely with the Foundation.
SSE’s step‑by‑step approach
SSE has taken the following steps:
- Understanding the supply chain: SSE began by mapping their supply chain to identify which supplier contracts fell within scope of Living Hours. This initial exercise provided clarity on which suppliers to engage with.
- Supplier surveying: SSE then surveyed the identified suppliers to understand how closely their current practices align with Living Hours standards. This helped establish where changes were needed.
- Identifying where to start: Using insights from the mapping and survey stages, SSE identified and prioritised suppliers to focus on first. This approach follows Living Wage Foundation guidance, which encourages employers to start with the highest‑impact or most‑ready suppliers before scaling outwards.
- Supplier engagement and relationship building: Central to SSE’s approach is collaboration: working directly with suppliers not simply to inform them of requirements but to build understanding, address questions and foster buy-in to support implementation. SSE has already facilitated conversations between the Living Wage Foundation and key suppliers to provide clarity, guidance and early‑stage support.
SSE’s next steps
SSE’s long-term ambition is to embed Living Hours across its supply chain, using an iterative approach that allows both SSE and its partners to manage change sustainably and responsibly while building momentum, learning from each stage and applying best practice as the rollout continues.
SSE’s next steps include:
- Focusing on high-risk categories first by engaging with key in-scope catering, security and cleaning suppliers.
- Applying learning from the process of onboarding the first suppliers to develop best practices and gradually extend Living Hours to additional suppliers over time.
- Reviewing and strengthening the supplier onboarding process so that Living Hours clauses are embedded in all new contracts with in-scope suppliers.
- Providing information for third-party workers around their entitlements as in-scope workers under a Living Hours accredited employer.
As SSE continues its phased collaborative approach to rolling out the Living Hours measures to its third-party workforce, it is demonstrating what responsible leadership looks like in practice, working to ensure that everyone who contributes to SSE’s success can live with dignity and respect.
This approach is essential for sustainable long‑term change and encouraging wider adoption. As Esther said, “The more customers are asking their suppliers to put Living Hours into contracts, the easier it is… the more the movement grows and awareness grows, the easier our job is in embedding it through the supply chain.”
