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

Team Leader LGV Driver (Seasonal)

Wakefield Council
£21,448.50 - £23,652.75, Grade 6, 27.75 hours, Permanent
This is a full-time post of 37 hours per week (Tuesday to Friday - March - November) Wakefield, West Yorkshire
Recuriter: Wakefield Council

Planning Ecologist

Wakefield Council
Grade 6 - Grade 8, 37 hours, Permanent
Wakefield Council has an exciting opportunity for an ecologist to joint our friendly, professional Planning Policy and Environment team Wakefield, West Yorkshire
Recuriter: Wakefield Council

Prestige Gardener

Wakefield Council
£28,598.00 - £31,537.00, Grade 6, 37 hours, Temporary
An opportunity exists in the Council’s Street Scene Services for a Prestige Gardener Wakefield, West Yorkshire
Recuriter: Wakefield Council

Planning Policy Lead

Ribble Valley Borough Council
PO5-8 (scp 35-38) £46,142 to £49,282 per annum
We are looking for a qualified planning professional with full RTPI membership and substantial knowledge Clitheroe, Lancashire
Recuriter: Ribble Valley Borough Council

Senior Occupational Therapist (Front Door Team)

The Royal Borough of Windsor & Maidenhead
£46,498 - £50,947 per annum
We have an exciting opportunity for a Senior Occupational Therapist to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead
Linkedin Banner