Laura Sharman 23 November 2016

Autumn Statement: Councils facing £337m costs over new living wage

Councils are expecting to fork out an extra £337m a year after the minimum wage was increased to £7.50 an hour in today’s Autumn Statement.

Chancellor Philip Hammond confirmed the National Living Wage (NLW) for all those aged over 25 would be increased by 4% in April 2017.

The move is expected to mean a pay rise for over one million workers, with the chancellor stating it would deliver a yearly pay rise worth over £500 to a person in full time employment.

The Government is aiming for the NLW to reach 60% of median earnings by 2020.

Mr Hammond said: ‘We recognise that more needs to be done to help families make ends meet and to ensure every household has opportunities to prosper,’ the chancellor added.

However, figures from the Local Government Association show that the NLW will cost councils at least £337m in 2016/17. The analysis by the LGA also shows that by 2020 - when wages are set to be £9 an hour - this could cost councils £111m.

There have also been warnings that the NLW will create a ‘pay crunch’ in the social care sector, with one million care workers likely to see increases in their salary. The Resolution Foundation has calculated the new wage would leave a funding gap of around £1.4bn in the sector.

SIGN UP
For your free daily news bulletin
Highways jobs

Positive Journeys Support

Durham County Council
£26,403 - £28,598 p.a. Grade 5
We are excited to be expanding our Positive Behavioural Support Team within County Durham and currently have a 30 hour vacancy and 2x 35 hours vaccnci Durham
Recuriter: Durham County Council

Structures Manager

Durham County Council
£50,269 - £54,495
An opportunity has arisen in the Highways Services for a Structures Manager    WHAT IS INVOLVED?  The post holder will be responsible for providing a Durham
Recuriter: Durham County Council

School Crossing Patrol

Durham County Council
Grade 1 £3,383 (approx.) £12.85 per hour
Join our School Crossing Patrol Service! Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit? Durham
Recuriter: Durham County Council

Project Support Officer

Durham County Council
Grade 9 £35,412 to £39,152 per annum
Are you ready to play a key role in shaping the future of local government? Durham County Council is embarking on an ambitious transformation, and we Durham
Recuriter: Durham County Council

Learning Support Assistants

Durham County Council
£28,142 - £31,022
Learning Support Assistants Grade 6   £28,142 - £31,022 Full Time, Whole Time Temporary  - Required from 1st November 2025 (or sooner  if possible) un Durham
Recuriter: Durham County Council
Linkedin Banner