Exeter city council hopes the introduction of a living wage for its lowest-earning employees will reduce reliance on benefits, boost the economy and give other businesses an incentive to pay more.
Fifty-six employees who were earning less than seven pounds 45 per hour are now being brought up to that level, at a cost of 100 thousand a year to the local authority.
The city council hopes other local employers will - over time - follow its example, giving local people more spending power.
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