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 latest 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 spokesman said: “Further work is underway to determine whether any other contractors or third party suppliers are employing staff on rates of pay that would need to be increased to the Real Living Wage level as part of the council becoming an accredited Real Living Wage employer.  

“If this is the case then the council would have three years to implement this change and this would be done when contracts are next re-tendered allowing contractors time to plan for any change. 

“We have not yet identified whether any third party staff will affected. This work is currently underway and will be used to inform the future decision which will be taken by cabinet on whether to proceed with accreditation.” 

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.