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

Team Leader - Tenancy Sustainment

Durham County Council
Grade 12 £45,529 - £49,817
Join our Housing Assets and Investment team as a Team Leader - Tenancy Sustainment and play a key role in helping residents maintain successful tenanc Seaham
Recuriter: Durham County Council

Senior Surveyor

Durham County Council
Career Grade 11 to 12 - G11 £42,123 - £46,579 / G12 £45,529 - £49,817
Join our Strategic Property Management team as a Senior Surveyor and play a key role in the effective management of the Council's extensive land and p Durham
Recuriter: Durham County Council

Engineering Team Manager (Highways Assets)

Calderdale Metropolitan Borough Council
Special A, SCP 42-45, £55,224 - £58,605 pa
You will be responsible for the Councils asset management system, and ensuring all data is valid and current. Calderdale, West Yorkshire
Recuriter: Calderdale Metropolitan Borough Council

School Chef (CDC)

City Of Doncaster Council
Grade 6, £27,274 - £28,153 (pro-rata)
You must hold a minimum of Level 3 in a relevant childcare qualification, experience of working in an Early Years setting is essential Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council

Early Years Practitioner

City Of Doncaster Council
£26,227 per annum
You must hold a minimum of Level 3 in a relevant childcare qualification, experience of working in an Early Years setting is essential. Doncaster, South Yorkshire
Recuriter: City Of Doncaster Council
Linkedin Banner