A radical plan by Glasgow City Council to stop paying for social care by the hour has been criticised as forcing care users to pay the price of fair wages for care workers.

The new plan, backed by the council’s executive committee, has come under fire from some groups, but others have given the idea a cautious welcome.

The council has warned the introduction of a £9 national minimum wage could hike the city’s social work budget by £21million a year, mainly to bring pay up from the current average of around £7.50 an hour paid by providers.

Of £247m spent on social care services per year by the council, £160m is currently going to companies who currently are unlikely to pay anywhere near the new national minimum wage, said councillor Matt Kerr, executive member for health and social care.

As a result the council is now planning to abandon the traditional model of commissioning much social care by the hour. Care providers will be asked to find ways of delivering ‘holistic’ help for people with disabilities or other care needs, while using less staff time.

Initially six organisations will be involved in the trial, which could cut waste and increase use of technology.

This will make it possible for organisations to absorb additional costs like the hike in the minimum wage, and increased pay for those working sleepover shifts, following an EU ruling.