A COUNCIL is to look at the financial implications of requiring its contractors to pay the ‘real living wage’.

Monmouthshire County Council has already been paying its staff the unofficial hourly rate, based on the cost of living and set according to how much people need to earn in order to afford a decent standard of living, since April 2014.

The council’s Labour-led cabinet has agreed it should seek accredited status by the Real Living Wage Foundation, which sets the rate, and as a result will need to review its supply chain to see if contractors are paying rates that would also need to be increased.

All of the council’s directly employed staff are currently paid the ‘real living wage’ rate of £12 an hour, and care staff employed by contractors are also covered by the Welsh Government’s commitment they are paid at least this rate.

The Real Living Wage Foundation announced at the end of the October the least revised rate of £12.60 an hour which accredited employers have until May 1 to implement.

At present there are two scale points on the nationally agreed local government pay scale below £12.60 an hour but the council expects this to be addressed as part of national negotiations on local government pay from April.

However to meet accreditation the council will have to look at pay among its contractors supplying services on the council’s behalf, but not those making or supplying it with goods.

A council spokesman noted that the council is still assessing whether any contractors or third-party suppliers are paying staff below the real living wage. If any such cases are found, the council will have up to three years to implement the change, typically at the next contract re-tendering. The decision on whether to proceed with real living wage accreditation will be made by the cabinet once this review is completed.

The legal minimum wage for workers aged 21 and over, known as the national living wage, is currently £11.44 an hour, which is due to rise to £12.21 an hour from April.