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

Strategic Lead Opportunities - Highways and Transport

North East Lincolnshire Council
£65,211 A relocation package is available
North East Lincolnshire Council is reimagining the way highways and transport services are delivered North East Lincolnshire
Recuriter: North East Lincolnshire Council

Senior Town Planner

North East Lincolnshire Council
NJC28 £39,152
If you’re someone who thrives on shaping places and making a real difference to communities, this could be the role for you. North East Lincolnshire
Recuriter: North East Lincolnshire Council

Apprentice Microsoft Azure Cloud Support Specialist

Essex County Council
Up to £25081.00 per annum
Apprentice Microsoft Azure Cloud Support Specialist (Information Communications Technician Level 3)Fixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Public Health Improvement Officer (CDC)

City Of Doncaster Council
Grade 9, £40,778 - £45,092 (Pay Award Pending)
The City of Doncaster Council puts improving the life of its residents at the centre of everything we do Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

Market Cashier

Wyre Borough Council
£13.26 per hour
We are looking for a reliable and customer‑focused Market Cashier to join our team at Fleetwood Market. Poulton-Le-Fylde, Lancashire
Recuriter: Wyre Borough Council
Linkedin Banner