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

Lead Social Worker WMF2939e

Westmorland and Furness Council
£47,181 to £48,226
We have an exciting opportunity for the role of Lead Social Worker in the Learning Disability, Transition and Autism Team Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Streetworks Compliance Officer WMF2942e

Westmorland and Furness Council
£36,363.00 - £37,280.00
The Streetworks Compliance Officer role within the Highways Service plays a vital part in managing and overseeing streetworks Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Family Hub Practitioner - WMF2923e

Westmorland and Furness Council
£32,061 - £32,597
An exciting opportunity has arisen for a Family Hub Practitioner in the Best Start Family Hubs Cumbria / Various
Recuriter: Westmorland and Furness Council

Support Officer

Durham County Council
Grade 4 £25,583 - £26,824 pro rata
We have an exciting opportunity for a part time temporary 24 month contract Support Officer to join our dedicated team within Business Services. WH Durham
Recuriter: Durham County Council

Class Teacher

Durham County Council
£37,101- £45,352
KS2 Class Teacher (Maternity Cover)  This is a maternity cover post and will continue until the substantive post holder returns. The successful candid Peterlee
Recuriter: Durham County Council
Linkedin Banner