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

Communications and Engagement Officer

Royal Borough of Greenwich
£44,331 - £47,532
We’re looking for two enthusiastic and dedicated communications professionals to join our team and work on communications for transport. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Families Information Officer

Royal Borough of Greenwich
£38,934 - £40,755
The Greenwich Families information Service is requiring cover for maternity leave within the team. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Finance Assistant

Royal Borough of Greenwich
£31,524 - £32,931
Roles have generic job descriptions across the department’s full range of accounting services. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Housing Assurance Service Manager

Kirklees Metropolitan Council
£55,675 - £56,649
We’re building a brand-new assurance team in our Homes & Neighbourhoods service Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Trainee Public Health Practitioner

Kirklees Metropolitan Council
£24,404 - £24,790
Working within the Kirklees Public Health Improvement team Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council
Linkedin Banner