Living wage should be paid to everyone working for Portsmouth City Council regardless of whether they are direct employees

Councillor Cal Corkery, who is also the leader of the Labour group, said extending it to contractors, most of whom work in social care, would benefit the whole city economically.

But concerns remain about funding the move, which is expected to cost more than £2m a year, and how the council can enforce payment through the private companies it contracts.

A task and finish group, made up of political group leaders and set up under the council's employment committee, was formed in July to look at the potential for the council to be accredited through the Living Wage Foundation.

The council pays all directly-employed workers the living wage but has yet to extend this to contracted workers which would be required by the foundation.

The group has recommended that the committee, which meets on Thursday (September 15), asks the council's cabinet to 'consider' accreditation as part of its budget-setting process for next year and that this is based on the revised figure due to be set by the foundation in November.

Cllr Corkery, who was a member of the group, said: 'We know the living wage provides a benefit to those who receive - and they are largely people working in adult social care - but there are also knock-on effects by increasing the quality of care, helping increase job retention and increasing spending in the local economy.’

Expansion of the living wage has been a long-term aim of the Labour group and it tried to have it included in this year's council budget but was defeated due to concerns no long-term funding was proposed beyond this year.

The council has estimated it would cost just under £2m a year, although this figure does not include the expected November increase.

Council leader Gerald Vernon-Jackson, who was also a member of the group, echoed these concerns.

'We have always been keen on the living wage,' he said. 'After all it was the Lib Dem administration that introduced it.

'But we have to find a sustainable way of funding its expansion. At the moment the only way of doing that seems to be by cutting jobs elsewhere.'

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