Dundee has set out a plan to become the first city to adopt a new approach to drive the uptake of the real Living Wage by local businesses. The real Living Wage reflects the cost of living and is voluntarily paid by more than 4,700 employers across the UK.

More than 50 Dundee employers have joined an alliance and voluntarily committed to paying all staff and subcontractors a real Living Wage of £9 an hour, significantly higher than the government’s minimum wage of £7.83.

The alliance currently employs a quarter of all workers in the Scottish city and has set out an action plan to double the number of workers earning the real Living Wage over the next three years. The alliance plans to do this by signing up other major employers in the city.

The Scottish government’s fair work minister Jamie Hepburn said: “It is fantastic to see Dundee setting out its ambition to become the UK’s first ‘Living Wage City’.

“The significance of the Living Wage cannot be overstated. Evidence shows that paying it leads to increased productivity, better morale and lower sickness absence. It also demonstrates to the world that an organisation is committed to treating its workforce well.”