Town councillors in Keswick have backed the principle to become a living wage town.
Councillor Adam Paxon called on colleagues to support a plan by Fair Cumbria.
He said paying people at least the amount set down by the Living Wage Foundation would help businesses retain loyal staff and provide good customer service, as well as giving a boost to employees.
Coun Paxon said: "It's taking people away from having two or three jobs just to make ends meet."
Coun Andrew Lysser added: "One of the biggest turnovers of staff in this county is the hospitality industry. They're moving for 5p per hour or 10p per hour."
The council agreed to support principle plans by Fair Cumbria to make Keswick a living wage town.
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