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

Seasonal Parks and Grounds Maintenance Operative

North Yorkshire Council
£12.85 - £14.13 per hour
Are you someone who enjoys the outdoors? Are you looking for a role within a great team that is varied and truly enjoyable? Leeming Bar, Northallerton
Recuriter: North Yorkshire Council

Social Worker (CTPLD)

The Royal Borough of Windsor & Maidenhead
£40,192 - £44,012 per annum plus an annual retention
The Royal Borough of Windsor and Maidenhead (RBWM) is set in the wider county of Berkshire Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Library & Customer Assistant - WMF2790e

Westmorland and Furness Council
£25,989 - £25,989
Are you an energetic, highly motivated, and customer-focused individual with a passion for public service? Kendal, Cumbria
Recuriter: Westmorland and Furness Council

Highway Network Engineer - WMF2808e

Westmorland and Furness Council
£45,091 - £46,142
This role is a great opportunity for candidates who have significant experience of highway, transportation, or construction design Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Digital Programme Support Officer- WMF2809e

Westmorland and Furness Council
£34,434- £35,412
Westmorland & Furness Council is on an exciting digital transformation journey Kendal, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner