Pay freeze/cap clarification for local government
The LGA have been receiving many an email asking if the Government’s pay freeze/cap will apply in local government, and have kindly clarified the issue for us as below:
As set out in the LGA’s Spending Review Briefing (page 7), central government cannot impose a pay freeze / cap on local government as pay is determined between the employers and unions (either nationally or locally).
The unions have informed us that their pay claim will not be lodged until next year. Councils will be consulted on it in order to inform the National Employers’ position for when they reach the stage of formally responding.
A continuing huge challenge for the National Employers arises from the Government’s target for the National Living Wage (NLW) to reach two thirds of median earnings in 2024; current forecasts show that to be £10.69 per hour. The bottom hourly rate in local government is currently £9.25 (outside London), so we have only three or four pay rounds to increase just the bottom pay point by a potential further 15.6%.