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

Property Management Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £47,229 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Social Worker

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £52,767
Social Worker£38,... London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Registered Manager - Children's Home - WMF2945e

Westmorland and Furness Council
£51,356 - £52,413 (plus an additional market factor supplement of £7,842)
Are you looking for a role that offers more than just career progression? Dalton-In-Furness, Cumbria
Recuriter: Westmorland and Furness Council

AYSE Social Worker - WMF2956e

Westmorland and Furness Council
£34,434 - £35,512
Would you like to work in a positive, close-knit and supportive environment Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council

Project Lead Capital Programme - WMF2951e

Westmorland and Furness Council
£47,181- £48,226
The Property Portfolio plays an important role in delivering capital projects Kendal, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner