Ashfield District Council may need to find £1.5 million to fund potential staff pay award

It follows union calls for either £2,000 or a rise in line with inflation – now standing at 10.1 per cent – to help council workers cope with the cost of living crisis.

The National Employers – the organisation in control of public sector pay – came back with the £1,925 offer and ongoing negotiations will decide whether it is accepted.

If agreed, every member of staff employed by councils would receive the sum regardless of pay bands, working out at a 10.5 per cent rise for the lowest-paid workers.

And it could be backdated to April 1, 2022, putting pressure on councils to find the funding straight away for staff working in their organisations.

Most Nottinghamshire authorities say they are awaiting the result of the ongoing negotiations before confirming how it will impact their finances.

However, both Gedling Council and Ashfield Council have revealed it could add millions to the pay bills of the county’s lower-tier authorities and have called on Whitehall to help fund the rise if it goes ahead and prevent budget pressures.

Gedling says the rise could mean it needing to find an extra £1 million, Ashfield says it will potentially need to find as much as £1.5 million without Government help.

Coun Jason Zadrozny-Bland (Ash Ind), Ashfield District Council leader, said: “Government expects us to deliver key services on a shoestring.

“Our staff do an excellent job and that should be rewarded.

“That said, this will hit our reserves.

"The Government needs to fund our public services properly – warm words don’t pay bills.”

Ashfield and Gedling’s concerns come after the Local Government Association urged for Whitehall intervention over similar increases to the National Living Wage, which could rise by 20 per cent in the next two years.

The body, which represents all councils in England and Wales, says without Government support, services could be ‘put at risk’.

Coun Andrew Western, chairman of the LGA’s resources board, previously said: “Councils know this year will be tough for many, especially those on the lowest incomes.

“Supporting those on the lowest pay is not only fair but improves the motivation, loyalty, productivity, and retention of hard-working council staff.

“However, 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 Department for Levelling Up, Housing and Communities has been approached for comment.