THE wages of Southampton City Council’s lowest-paid employees could be set for a boost.

The city council could introduce the Living Wage for its employees by the end of the year.

That means staff will have their hourly rates raised to £7.45 – and council chiefs hope employers in the rest of the city will follow their lead.

The Living Wage is calculated by the Centre of Research in Social Policy at Loughborough University and is based on how much a parent of two, with a partner earning the same, needs to avoid the effects of poverty.

The figure currently stands at £7.45 an hour outside of London.

Earlier this year the city council announced its intention to sign up to the Living Wage by setting up a Fairness Commission to tackle poverty and inequality in the city.

It is estimated 440 employees could be affected by the introduction of the Living Wage, although only a small number are currently on the council’s lowest hourly rate of £6.42.

Introducing the Living Wage for its staff will cost the council £68,000.

Discussions are currently ongoing about its introduction, and authority chiefs hope it can be implemented in September.

Eastleigh Borough Council is among the other authorities that have signalled their intent to join the 16 councils currently paying staff the Living Wage.

Southampton City Council leader Simon Letts said: “This will only affect a relatively small number of staff, but we are looking to set an example and encourage others to sign up to the Living Wage, such as other public sector organisations and businesses.

“The idea is that we establish that Southampton is a city where people are paid a decent amount for what they do.

We also hope that it would be introduced nationally under a future Labour Government.”

The scheme is also supported by the council’s Conservative opposition.

Group deputy leader Jeremy Moulton said: “It seems the right thing to do, particularly at a time when people are struggling, and those who are paid the least are those who need support the most.

“The city council is the leading political body in the city so it will show leadership if the council adopts the Living Wage.”