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

Head of Finance - Children & Young People’s Service

Rotherham Metropolitan Borough Council
£75,585 - £80,726 (pay award pending)
This is a great place to work for people who want to make a real difference. Riverside House, Rotherham, South Yorkshire
Recuriter: Rotherham Metropolitan Borough Council

MSK Specialist Instructor

North Yorkshire Council
£38,220 - £42,839 per annum, pro rata
We are seeking a passionate and skilled MSK (Musculo-skeletal) Specialist Instructor to join our team Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Business Finance Manager (Commercial Focus)

North Yorkshire Council
£55k plus up to 10% recruitment payment
A Commercial Role – Powered by Public Sector Strength Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Health and Safety Advisor

Durham County Council
£35,412 to £39,152 p.a. (Grade 9) pay award pending
An exciting opportunity has arisen within Health and Safety for a Health and Safety Advisor. This post is temporary to cover a period of maternity le Durham
Recuriter: Durham County Council

Street Lighting Highways Operative

Durham County Council
£28,142 - £31,022 (pay award pending)
Highways Services are looking for a Highways Operative (Street Lighting). To ensure the efficient and effective undertaking of civil engineering activ Peterlee
Recuriter: Durham County Council
Linkedin Banner