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

Workplace Coach - Business and Management Team

Essex County Council
£27412.00 - £32249.00 per annum + Full time equivalent
Workplace Coach - Business and Management TeamPermanent, Part Time£27,412 up to £32,249 per annum (full-time equivalent)Location
Recuriter: Essex County Council

Ugobus driver

Essex County Council
Up to £25959.00 per annum
Ugobus driverPermanent, Part Time£25,959 per annum (full time equivalent) Location
Recuriter: Essex County Council

Damp Surveyor

Royal Borough of Greenwich
PO4 - £49,056 - £52,194
Damp Surveyor (DMC)
Recuriter: Royal Borough of Greenwich

Project Support Officer

Essex County Council
£28402.00 - £33413.00 per annum + pension
Project Support OfficerFixed Term, Full Time£28,402 up to £33,413 per annumLocation
Recuriter: Essex County Council

Park Operations Assistant (Great Notley Country Park)

Essex County Council
Up to £13.46 per hour
Park Operations Assistant (Great Notley Country Park)Permanent, Part Time£13.46 per hourLocation
Recuriter: Essex County Council
Linkedin Banner