A BID to get council chiefs to campaign for all Worcester employers to offer the Living Wage has been rejected - despite concern thousands of people are missing out.

Councillor Joy Squires, Labour's parliamentary candidate for Worcester, has failed in a bid to get the city council to take the lead on it.

During a vote in a full council meeting, she called called for the authority to "use its leading role and influence" to work with outside bodies with the aim of "making Worcester a Living Wage city".

The Living Wage, currently £7.85 an hour, is a rate calculated by academics which is deemed to be enough for people to live above poverty.

The city council decided to start paying it last year, which as we revealed at the time gave around 73 workers a rise from the legal minimum wage, but the Office for National Statistics suggest around 20 per cent of people employed in Worcester earn less.

A motion by Councillor Squires was voted down after concerns it would damage Worcester's economy.

Cllr Squires said: "There is definitely a consensus that the Living Wage is the rate needed for people to provide for themselves and not rely on benefits.

"I've met a lot of people on the doorsteps and a lot of them are struggling. "

She said not only do 20 per cent of city people earn less than that rate, but for part-time workers it rises to 37 per cent.

Labour Councillor Matthew Lamb said: "It used to be that you were poor because you didn't have a job, but half of all people in poverty these days are in work, some five million people.

"Paying a decent wage is morally right."

He said he believed it would save the Treasury £2 billion if the minimum wage was upped to the Living Wage.

But others disagreed, with Conservative Councillor Andy Roberts saying Labour were aiming for "seductive strap-line".

"I accept this motion is well intended, but I do believe it is flawed," he said.

"But it's great that we can talk about this, giving the way the economy has improved it's brilliant we can even consider being in a position to do this."

Councillor Marc Bayliss, deputy leader and cabinet member for economic prosperity, said the best option was to lobby for the minimum wage to increase above inflation.

He said to ask just Worcester to become a Living Wage city could have an adverse impact for investors.

"Lifting people out of poverty is our aim too, but I wouldn't want Worcester put at a disadvantage," he said.

Cllr Squires made one last-ditch plea before the vote, saying she wanted the city council to "wrap its arms around Worcester" and "be a good neighbour".

During a vote the Labour and lone Green and Liberal Democrat all backed it but the Conservatives went against.