Ahead of LGA Annual Conference next week, they have published new analysis which shows that unfunded National Living Wage increases could pose a risk to local services and jobs. The analysis shows that paying the forecasted increase in the National Living Wage (NLW) for the lowest paid council staff alone could cost councils at least £400 million over the next two years.
The true cost is, however, likely to be significantly higher given the knock-on impact of the dramatic rise in minimum pay levels on other local government pay grades and the increased cost of commissioned or outsourced services, such as adult social care. Even before the revised forecast for the NLW, LGA workforce survey found 15 per cent of councils were already considering having to reduce staffing numbers and six in 10 councils are highlighting that the workforce capacity of their council to deliver services was a moderate or large concern. The LGA have said that without central government support to cover the cost, councils will be unable to keep pace with stark NLW increases without having to take the drastic decision to cut services.
From the LGA