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07 Feb 2018 at 10:20

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© South East Employers 2018

The Future of the Local Government Services Pay Spine

In 2015 the Government announced the National Living Wage, payable to those over the age of 25, and its intention that by 2020 the National Living Wage rate would be the equivalent of 60% of the median earnings of the UK workforce. Currently that rate is forecast at being around £9 - £9.30. This has some implications for the National Pay Scales that need to be addressed.

The first stage was to achieve a two-year pay deal as early as possible in the negotiations as this allows all parties to quickly move to focus on the medium term need. This was achieved in May 2016.

A number of options are available to ensure compliance with the National Living Wage which will be considered by the NJC. The National Employers would prefer not to be a 'minimum wage' employer and would rather set the lowest point of the pay spine above the level of the National Living Wage. Simply being 'compliant' could result in 'crunching' of the lower pay scale and compression of grade structures in councils.

The LGA has announced a project to review the future of the National Pay Spine. Further details are contained in Employer Circular PDF 163Kb to Chief Executives. IDR has been commissioned to undertake a research project PDF 251Kb into the impact that the National Living Wage is and will continue to have on Local Government Pay which will feed into the review.

The progress of this review is now being incoporporated into the pay offer for 2018 -2020.