More than 3,000 Caerphilly County Borough Council workers will get a pay rise to earn at least £7.20 an hour – costing taxpayers an extra £500,000 a year.
On Tuesday, a full meeting of the council formally approved the measure, previously agreed by the authority’s executive cabinet.
The pay rise will come into effect in October and will cost £252,000 this financial year and an extra £504,000 each year after.
Cllr Harry Andrews, leader of the council, said: “This significant decision, which received overwhelming support from members, really fits in with our vision to tackle poverty and improve living standards for our lowest paid employees.
“This decision illustrates that we are taking a stand for the 3,000 plus employees on low wages, the majority of whom are female, frontline staff, by ensuring that none of our workforce earn below the minimum wage.”
Cllr Keith Reynolds, Deputy Leader and cabinet member with responsibility for corporate services added: “This far reaching initiative forms a key part of our wider regeneration plans for the whole county borough. As a community leader, we will also work hard to promote the benefits of implementing the Living Wage to other employers in the area.”
The ‘Living Wage‘ is a concept calculated on the cost of basic living.
Labour has said it will pay for the increase in wages through savings already made.
According to council papers, the £504,000 will be funded as follows:
£228k virement from Public Services recurring under spends.
£120k from recurring under spends in respect of School Transport.
£156k from 1% uplift (pledge) set aside for Social Services and Schools.
Proud to support the implementation of the living wage. Caerphilly will be the first Authority in Wales to introduce the living wage and it really demonstrates Laboour's commitment to tackle poverty head on.
Wonderful!This will be good news for those on low wages. It will also be a much needed boost for the local economy because it will increase spending power.