Barking and Dagenham Council has become the first local authority in the UK to guarantee all its lowest paid employees will be get a minimum wage of £9 an hour or £16,425 per year.

The cabinet agreed last night that all permanent council staff and agency staff working on Ccuncil assignments, be paid 45 pence above the London Living Wage, back dated to January 1.

Council leader, Cllr Liam Smith said: “The increase reflects what people need to live on in the borough. We have over 1,500 low paid workers and this decision impacts on those who need it most like cleaners, catering staff and teaching assistants - majority of whom are local residents.

He said the new minimum wage was one of many initiatives the authority is running to support residents.

“We have also announced a collective energy switchover scheme that we hope will save every household up to £200 a year off their energy bills, coupled with the biggest house building project of any council in London, to ensure our residents have the highest standard of living condition possible.”