Living wage could cost councils up to £1bn by 2020
- 13 Jul
By 2020 councils in England Wales could be paying an extra £1bn a year for the national living wage.
The Local Government Association has said that currently 93,000 council staff earn less than the living wage proposed by Chancellor George Osborne, reports the BBC.
The LGA have said that the cost of implementing the living wage policy should be taken into account when council funding levels are set in the future.
LGA analysis shows that 95% of government workforces already earn more than the recommended wage, 92,820 people earn less. Increasing their pay to meet the new rate in 2016 would cost an estimated £6.8m in 2016, rising to £111m in 2020.
The say the biggest impact would be in outsourced contracts for provision of social and residential care, which councils say would have to be renegotiated to take into account the fact that many workers in the sector earn less than £7.20 an hour.
"Councils support proposals to introduce a national living wage to help ensure staff receive a fair day's pay for a fair day's work," said the organisation's chairman, Gary Porter.
"However, our analysis shows the cost to councils of implementing the change will keep growing and reach £1bn by the end of the decade. Local authorities have made £20bn in savings since 2010 and are likely to face further funding reductions and spending pressures over the next few years. It is vital that these costs are considered by the government in the wider debate of council funding. "If government were to fully fund the cost of introducing the national living wage to council staff and care workers, councils could avoid extra financial pressure being placed on them as they continue to protect services, such as caring for the elderly, collecting bins and filling potholes."
The Department for Communities and Local Government said ministers would continue to listen to the views of councils in the run-up to the next local government settlement "about the best way of distributing funding to achieve fairness, efficiency and local growth". Street cleaners, school dinner staff and care workers have as much of a right to a fair wage as anybody in this country and local government employers will recognise this and the contribution made by these hard-working people in their areas. Councils have worked hard over the past five years to deliver a better deal for local taxpayers, however, like the rest of the public sector will have to continue playing their part in tackling the deficit to ensure the economic recovery continues."
What do you think of this? Tweet us your comments @suppsolutions
- 08 Nov
NHS BOSS SETS OUT A CASE FOR CASH BOOST
The speech by Mr Stevens at the NHS Providers' annual conference of health managers is being made at the time when three reputable health think-thanks- the Health Foundation, the King's Fund and the...
- 09 Jun
THERESA MAY PLEDGES TO REPLACE THE MENTAL HEALTH ACT 1983
According to Ms May, the new bill would introduce the following:According to the Tories, the proposals were described as the biggest change to mental health treatment law in over 30 years.Ms May...
- 30 May
THE PRESENT FIRST PRIME MINISTER OF SCOTLAND IS TO PLEDGE AGAINST ANY PLANS TO PRIVATISE THE NHS
It is also expected that Sturgeon will do the following as proof of her party's commitment to fighting against further austerity:Sturgeon said this before Tuesday's manifesto launch:"While the polls...
- 17 Mar
402 MILLION POUNDS WILL BE INVESTED IN COUNCILS WITH THE GREATEST HOMELESSNESS DEMAND FROM APRIL 2017
Presently, funding is only used for homeless households and not for the prevention of homelessness in the first instance.The funding by the Department for Communities and Local Government is set to...
- 15 Mar
RULES AROUND PERSONAL INDEPENDENCE PAYMENTS MAY CHANGE ON THURSDAY
Ministers have advised chief executives of over 30 charities which claimed that people will be left without vital financial support, to restrict access to a disability benefit.The Disability Benefits...
- 06 Mar
THE GOVERNMENT HAS BEEN URGED BY THE BMA TO INCREASE HEALTH SPENDING BY 10 BILLION POUNDS
This increase in health spending to a proportion of GDP that matched that of the 10 leading economies across Europe could pay for at least 35,000 extra beds a day and many more GP's, according to the...
- 05 Sep
MANY DOMESTIC VIOLENCE REFUGES AT RISK OF CLOSING DUE TO HOUSING BENEFIT CAP
Women who have been victims of domestic violence as well as their children are at risk of falling into the hands of their violent partners if the government caps housing benefit in the social sector...
- 03 Sep
Data on disability benefits refused by DWP
DWP officials have refused a second request for basic information on disability benefits using the “Section 22” exemption they used previously, reports The Independent.The Department had been...
- 02 Sep
UN to investigate how welfare reforms will affect disability rights
A disability charity in Scotland has said it’s been contacted by the UN’s Committee on the Rights of Persons with Disabilities as part of an inquiry into Britain’s treatment of people with...
- 01 Sep
Benefit cuts affecting 48,500 families in Liverpool
Analysis from Liverpool City Council has found that around 48,500 households are likely to lose their benefits due to new government reforms, reports the Liverpool Echo. Councillor Jane Corbett has...
Responding to the DWP Consultation: Housing Benefit Reform - Supported Housing "Found the seminar very informative and gave an interesting and full insight into current thinking about the consultation. Michael was a very engaging and knowledgeable presenter and encouraged interaction with the audience which led to further relevant points being shared with the room. I shall certinaly look out for future events!" M.E. - Care Housing Association