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

Business Services Senior Co-ordinator

Durham County Council
Grade 7 £31,015 - £34,811
Are you an experienced administrator who enjoys supporting people, leading a team and making sure services run smoothly? A fantastic opportunity has Durham
Recuriter: Durham County Council

School Secretary

Durham County Council
£26,403 - £28,598 pro rata (pay award pending)
Required from 1st November 2026   Kirk Merrington Primary School are looking to appoint a full-time school secretary due to the retirement of the curr Spennymoor
Recuriter: Durham County Council

Fleet Hire Desk Assistant

Durham County Council
£27,274 - £29,542
The Fleet Operations Team in Fleet and Depot Management are looking for a Fleet Hire Desk Assistant to join their team.   To assist the Fleet Services Durham
Recuriter: Durham County Council

Teaching Assistant

Durham County Council
£25,185 - £25,989 pro rata (pay award pending)
This role is permanent, term time only plus 2 weeks, 37 hours per week. We are looking for an experienced and qualified Teaching Assistant, who is hi Durham
Recuriter: Durham County Council

Classroom Teacher

Durham County Council
£32,916 - £45,352 pro rata (pay award pending)
Required
Recuriter: Durham County Council
Linkedin Banner