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

Youth Justice Practitioner

Essex County Council
£38487.0000 - £51834.0000 per annum
Youth Justice PractitionerPermanent, Full Time£38,487 to £51,834 Per Annum Location
Recuriter: Essex County Council

Library and Resident Supervisor

The Royal Borough of Windsor & Maidenhead
£30,193 - £34,104 per annum (27,540.84 - £31,108.30 pro rata per annum)
You will help ensure our libraries provide a consistently high-quality, safe and welcoming service. Windsor, Multiple
Recuriter: The Royal Borough of Windsor & Maidenhead

Public Health Lead - Gambling Harms

The Royal Borough of Windsor & Maidenhead
£55,296 - £60,286 per annum (£33,177 - £36,171 per annum pro rata based on 22.2 hours per week)
The role presents an opportunity to gain experience working across two local authority areas and lead an emerging area of population health work. Windsor, Multiple
Recuriter: The Royal Borough of Windsor & Maidenhead

Family Support Parenting Practitioner

Gloucestershire County Council
£34,237 - £37,563 per annum
Join our dedicated team in Children's Services and make a real difference in the lives of children and families across Gloucestershire. Gloucestershire
Recuriter: Gloucestershire County Council

Senior Business Analyst

North Yorkshire Council
£ 48,738- £53,051 per annum
Work with a wide range of stakeholders across the Council to identify opportunities for change. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner