The Impact on Public Finances of meeting UNISON’s 2018/19 pay claim for NJC local government workers
Commissioned by: UNISON
This paper provides an estimate of the overall impact on public finances of the 2018-19 National Joint Council (NJC) pay claim for employees in local government covered by the NJC. Although the NJC also covers the majority of school support staff, they are not included in this analysis. This is because funding for any pay increase for them will come from the Department for Education, not councils. The staffing numbers in this analysis are therefore lower than those used in previous exercises to calculate the cost of the NJC pay rise.
Local government bears the cost of paying higher wages to its staff, as well as the higher employer national insurance contributions. Central government, on the other hand, benefits from higher wages through increased tax revenues and lower benefit spending. This paper reports estimates of both the cost to local government and the savings to central government of meeting UNISON’s pay claim for 2018/19.
About this report
This report was funded by UNISON and written by Issy Petrie 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.