William Eichler 30 October 2026

Council staff pay bill tops £35bn as workforce shrinks by 14%

Council staff pay bill tops £35bn as workforce shrinks by 14% image
© Smile Studio AP / Shutterstock.com.

Councils in England spent £35.8bn on staff pay in 2024/25, according to new Local Government Association (LGA) workforce data.

The total, which excludes teachers, police, fire and staff employed by contractors, includes £7.3bn in additional pay such as national insurance and pension contributions.

The sector employs 1.15 million people, or 899,000 full-time equivalents, a fall of 14% (143,000) over the last decade. The average full-time salary is £37,000, and 86% of councils set pay through national collective bargaining.

Recruitment remains a challenge, with 94% of councils reporting recruitment and retention difficulties. Around 80% have struggled to recruit and retain children's social workers, while the adult social care vacancy rate stands at 6.2%.

The workforce is 73% female, and the average gender pay gap is 2%. The LGA says the mean council gender pay gap has fallen by 65% since 2019/20. Elsewhere, council-funded adult social care staff cost £21.8bn, while the teacher pay bill is £27.9bn. The Local Government Pension Scheme now has 6.9 million members.

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