Heather Jameson 13 July 2015

Councils warn living wage will cost £1bn by 2020

Councils will have to find more than £1bn a year by 2020/21 to cover the costs of the new National Living Wage, according to estimates by the Local Government Association (LGA).

As outlined in last week's budget, the National Living Wage is set to start at £7.20 an hour next April, rising to 60% of median wages – estimated to be around £9 an hour – by 2020.

The LGA claims the costs to meet the increase in 2016 is £6.8m, with a further £330m to cover contract costs. By 2020, when wages are set to be £9 an hour, the LGA calculates this could cost £111m.

The LGA has called for the new costs to be considered as part of a wider debate on council funding as we head towards the next spending review.

LGA chairman, Cllr Gary Porter, said: ‘Councils support proposals to introduce a National Living Wage to help ensure staff receive a fair day's pay for a fair day's work. However, our analysis shows the cost to councils of implementing the change will keep growing and reach £1 billion by the end of the decade.

‘It is vital that these costs are considered by the Government in the wider debate of council funding.’

SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

Ebbsfleet Development Corporation
up to £165,000
Ebbsfleet is one of the UK’s most ambitious regeneration projects, a 21st-century Garden City Ebbsfleet, Kent
Recuriter: Ebbsfleet Development Corporation

EHC Assessment and Review Co-Ordinator - Part Time

The Royal Borough of Kensington & Chelsea Council
Up to £44937 per annum
Champion the journey for children and young people with special educational needs, ensuring they have every opportunity to thrive.This is a part time, England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Part Time Environmental Health Officer (Housing and Caravan/Mobile Home Site Licensing)

Ribble Valley Borough Council
SO2 (scp 29-32) £39,862 to £42,839 per annum pro rata
We are looking for an enthusiastic, self-motivated and experienced Environmental Health Officer Clitheroe, Lancashire
Recuriter: Ribble Valley Borough Council

UTMC Principal Engineer

Kirklees Metropolitan Council
£37,035-£45,718 (dependent on experience)
Join our team at Kirklees Council and help shape the future of urban mobility. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Coroners and The County Mortuary Service Manager

West Northamptonshire Council
£55036 - £58879
About the role West Northamptonshire Council is seeking a dynamic and experienced Coroners and County Mortuary Service Manager to lead the operational delivery of two critical services
Recuriter: West Northamptonshire Council
Linkedin Banner