COUNCIL workers are to be guaranteed “a living wage” under a deal hammered out by Oxford City Council and unions.

The council’s executive board has pledged to pay all employees at least £7 an hour from September.

The £7 minimum payment — dubbed the “Oxford Living Wage” — will apply to both permanent and temporary staff and will include sub contracted staff.

The lowest rate of pay for a current council employee is £6.21 per hour.

There are only 29 employees paid less than £7 per hour, although many of them have been transferred to Fusion Lifestyle, the charitable trust now running the city’s leisure facilities.

City councillors have promised to keep the living wage under review by monitoring the London Living Wage, which currently stands at £7.45.

A report by the council’s head of human resources, Simon Howick, said: “The Oxford Living Wage will increase annually by any cost of living increases negotiated for the national pay scheme for local government.

“The council will also review its living wage position in the context of the London Living Wage on a bi-annual basis, and make adjustments to pay grades accordingly to ensure it continues to reflect the relative position in Oxford.”

The council’s agency staff supplier, Champion, will also be instructed to ensure all staff are paid at least £7.

Council leader Bob Price said: “We do not envisage that the living wage will have any huge impact in terms of wages.

“The number of people being paid less than £7 is very small. It is entirely manageable in terms of our budget.

“We have been planning for it, for some time.”

The current national minimum wage stands at £5.73 an hour and £4.77 for workers aged 18 to 21.