The impact on public finances of meeting UNISON’s 2016-17 pay claim for school and council workers covered by the NJC for Local Government Services
Commissioned by: UNISON
This paper provides an estimate of the overall impact on public finances of the 2016-17 NJC pay claim for employees in local government and schools covered by the National Joint Council (NJC). The paper has been commissioned by UNISON. The pay part of the claim involves the deletion of all scale points points below either the UK or London Living Wage as appropriate, and an additional £1 per hour at each pay point above this.
Local government bears the cost of paying higher wages to its staff, and the associated higher employer national insurance contributions. Central government, however, is a beneficiary through higher tax revenues and lower benefit payments, plus additional benefits through consumption taxes when the extra earnings are spent. This paper reports estimates of both the cost to local government and the saving to central government of meeting UNISON’s pay claim.
About this report
This report was funded by UNISON and written by Adam Tinson of the New Policy Institute. The facts presented and views expressed in this report are those of the authors and not necessarily those of UNISON.