Celtic have agreed to pay all in-house staff a minimum hourly pay rate of £7.85 per hour, the equivalent of the new Living Wage.

However, the Parkhead club said it would not sign up to the Living Wage scheme because it would mean "handing over decision making on salaries to another agency".

The club said the decision would affect about 180 staff, all primarily involved in Celtic's retail section.

Parkhead bosses had been under pressure for more than a year from sections of their own support, as well as campaigners and some politicians, to introduce a minimum of £7.65 per hour for all those employed by the club, even via outside contractors.

The club's board refused this at last year's annual general meeting, claiming it would cost in excess of £500,000 to implement.

However, at yesterday's agm, club chairman Ian Bankier said the board understood "this is an important issue and have listened", before promising the £7.85 minimum.

Chief executive Peter Lawwell later said the board could not accept the resolution put forward by the Celtic Trust, a supporters' shareholders group, to introduce the Living Wage but would consult staff about the new salary base.

It will apply to all those directly employed by Celtic on a full-time or part-time basis, but not those who carry out work via outside contractors.

Jeanette Findlay, of the Celtic Trust, described the move as a positive "first step" but added the group would continue to push for full Living Wage accreditation.

Ms Findlay publicly ripped up a prepared speech on the issue after Mr Bankier's announcement.