Chris Mahony 21 June 2022

Rising wage bill could lead to service cuts

Rising wage bill could lead to service cuts image
Image: Small365 / Shutterstock.com

Government pledges on the National Living Wage (NLW) could cost councils at least £400m over the next two years and force further service cuts, the Local Government Association (LGA) has warned.

The Low Pay Commission has suggested the NLW could rise from £9.50 this year to somewhere between £10.58 and £11.33 from April 2024.

This higher figure would represent a 19% rise in two years – on top of the 6.6% rise absorbed by employers in April.

The LGA estimates that 35% of local government staff could end up paid no more than the NLW by 2024 unless additional funding is secured.

Chair of the LGA’s resources board, Andrew Western, said: ‘Staff pay makes up a huge proportion of councils’ costs and it is clear that the rising cost of living is going to have a huge knock-on impact on pay pressures for local government.

‘The forecasted sharp rise in the NLW – if unfunded – would hit council budgets hard and put services at risk.’

'Only by fully funding the cost, can central government ensure councils can continue to protect vital services - such as adult social care, homelessness support, collecting bins and filling potholes – and the jobs of the public sector workers that deliver them.'

A spokesperson for the Department for Levelling Up, Housing and Communities said: ‘We are working with the sector to understand the impact of emerging challenges on councils and stand ready to speak to any council that has concerns about its ability to balance its budgets.’

SIGN UP
For your free daily news bulletin
Highways jobs

Public Health Lead

London Borough of Richmond upon Thames and London Borough of Wandsworth
£51,540 - £62,451
Public Health Lead
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Director of Technology & Customer Experience

Oxfordshire County Council
£125,350 - £135,928
We do not settle for the status quo. Oxfordshire
Recuriter: Oxfordshire County Council

FM Electrical Engineer (Trainee)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£32,840 - £49,361 dependents on experience
Are you looking for a varied electrical role where your work has a direct impact on the safety and experience of thousands of building users. In this role, you will play a vital part in maintaining and improving a diverse corporate building portfolio of Wandsworth High Street
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Senior Research and Evaluation Officer

Essex County Council
£43431.0000 - £51095.0000 per annum
Senior Research and Evaluation OfficerFixed Term, Full Time£43,431 to £51,095 per annumLocation
Recuriter: Essex County Council

Private Housing Standards Team Leader (copy)

North Yorkshire Council
£47,181 - £51,356
Are you someone who has a passion for helping others? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner