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

Triage Advisor

Durham County Council
Grade 5 £27,274 - £29,542
We’ve got an exciting opportunity for a passionate and people-focused individual to join DurhamEnable as a Triage Advisor, supporting the Connect to W Durham
Recuriter: Durham County Council

Specialist Support Worker

Durham County Council
Grade 6 £29,071- £32,046 pro rata to hours worked
We are seeking to appoint a Specialist Support Worker for d/Deaf children and young people to work mainly within our Enhanced Learning Provisions in C Durham
Recuriter: Durham County Council

Lunchtime Supervisor

Durham County Council
£25, 614
Temporary contract until 21st July 2027 Part Time- 7.5 hours per week. Term Time Only Required to start 01/10/2026 (or as soon as possible)   The Gove Durham
Recuriter: Durham County Council

X3 Enhanced Teaching Assistants

Durham County Council
£29,071- £32,046 pro rata
Hours on site may vary due to training and meeting commitments- Staff are typically expected on site 8
Recuriter: Durham County Council

Team Manager - Connected Carers Team

Durham County Council
Grade 14, £51,928 - £56,293
We are looking for a Team Manager to join our Fostering service.  In Durham we strive to keep our children within their family, if at all possible an Seaham
Recuriter: Durham County Council
Linkedin Banner