A 10% pay rise for council staff is 'affordable' and would boost local economies, new research from a trade union has said.
Analysis by Landman Economics, commissioned by Unison, shows the net cost of funding the pay rise would be £789m. This is less than half the overall projected cost of £1.6bn.
Unison also argued the pay rise would help save the Government hundreds of millions as employees wouldn't need to claim additional benefits and would be paying more in extra tax and national insurance.
Head of local government at Unison, Jon Richards, said: 'Council budgets are under unbelievable strain after years of cuts. It’s high time ministers found the money to ensure the people providing local services at the heart of every community are treated fairly.
'They must give councils the money to pay the people who keep our streets safe, educate our children, maintain our parks and care for the vulnerable. Otherwise experienced staff will continue to leave for better paid jobs elsewhere and then it’s local communities that will be the losers.'
The three trade unions have rejected the pay offer of a 2% rise, calling it 'deeply disappointing'.
The National Employers has said a 2% rise would benefit over one million employees and would increase the national pay bill by £364m.