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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Trading Standards Professional Apprentice

Essex County Council
£27869.00 - £32787.00 per annum + Pension
Trading Standards Professional ApprenticeFixed Term, Full Time£27,869 up to £32,787 per annumLocation
Recuriter: Essex County Council

Associate Director for Financial Management (Deputy Section 151 Officer)

Dudley Metropolitan Borough Council
£108,015 - £118,000 pa
Operational leadership that turns strategy into reality. Dudley, West Midlands
Recuriter: Dudley Metropolitan Borough Council

Director of Finance (Section 151 Officer)

Dudley Metropolitan Borough Council
Competitive
The strategic voice of finance at the heart of Dudley. Dudley, West Midlands
Recuriter: Dudley Metropolitan Borough Council

Director of Commissioning, Procurement & Contract Management

Sheffield City Council
£99k - £103k
When you’re spending ten figures a year, you need to be way beyond just asking ‘how many, and how much? Sheffield, South Yorkshire
Recuriter: Sheffield City Council
Linkedin Banner