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

Business Support Assistant

Middlesbrough Council
£26,824
Are you organised, proactive and passionate about delivering high quality administrative support? Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Quality Improvement Officer - Academic & Vocational Provision

Essex County Council
£30585.00 - £35982.00 per annum
Quality Improvement Officer - Academic & Vocational ProvisionPermanent, Full Time£30,585 to £35,982 per annumLocation
Recuriter: Essex County Council

Residential Assistant - ASC

Essex County Council
£25959.00 - £26284.00 per annum
Residential Assistant - ASCPermanent, Full Time£25,959 to £26,284 per annum Location
Recuriter: Essex County Council

Apprentice AI Digital Champion

Essex County Council
£15435.00 - £24522.00 per annum
Apprentice AI Digital Champion (Digital Support Technician Level 3Fixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Advanced Social Worker - Integrated Front Door

North East Lincolnshire Council
Up to £49,282
Make the change, be the difference. North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner