Some of the lowest paid county council workers in Derbyshire are set to get a lower pay rise than they had expected.

Derbyshire County Council is switching which Living Wage agreement it follows due to budget constraints. The move will mean its lowest paid workers are likely to see just a 5p rise in what they earn per hour instead of potentially 30p.

The employees on the lowest salaries at the county council include roles such as school catering and crossing patrol staff and care home assistants.

Derbyshire County Council is pulling out of the Living Wage because it already pays over and above the set standard
Derbyshire County Council is pulling out of the Living Wage because it already pays over and above the set standard

In April 2014 it signed up to the Living Wage Foundation's standards, while the authority was under Labour control. But it will now - under Conservative control - follow the Local Government Association's National Employers' guidance.

This guidance has advised that for 2018 to 2019 local government authorities, such as Derbyshire County Council, should increase their salaries by 2.7 per cent.

This would boost county council salaries for those on what would be its new bottom pay point up from £7.85 to £8.50 an hour - this would be raised by another 2.8 per cent next year.

Meanwhile, the Living Wage Foundation had asked employers to raise the base salary up to £8.75 from £8.45.

The decision to change from the Living Wage Foundation standards to the Local Government Association's National Employers' guidance means that workers who were paid £8.45 an hour will only see their hourly rate increased to £8.50.

This is a difference of 5p instead of 30p if the ocuncil was still following the Living Wage Foundation's standards.

Overall, this increase is set to cost the council £5.9 million this year, and £3.1 million over budget.

Derbyshire County Council HQ at County Hall in Matlock
Derbyshire County Council HQ at County Hall in Matlock

A spokesperson for Derbyshire County Council said: "If the national pay offer is accepted by the trade unions everyone working for the council will receive a pay rise.

"Employees at the bottom of the council pay scale will continue to be paid above the National Living Wage."

The Living Wage agreement is a base salary, put in place to protect those aged 25 and over on the bottom rung of the county council's pay scale.

This agreement was meant to rise year-on-year until it reaches £9 an hour by 2020 for those aged 25 and above.

It is meant to differentiate from the minimum wage, which is a legal requirement for all employers to pay their workers under 25 a base salary - which is currently £7.38 for those aged 21-24, £5.90 for people aged 18-20, £4.20 for under 18s and £3.70 for apprentices.

School staff are employed separately from the county council, despite being governed by them.

As a result, schools can sign up to their own Living Wage agreement.

Out of the maintained schools and academies in Derbyshire, 285 have opted into the Living Wage Foundation agreement of £8.45 an hour for its 3,600 employees last year.

Councillor Anne Western, Labour party leader for Derbyshire County Council
Councillor Anne Western, Labour party leader for Derbyshire County Council

Labour group leader on the county council, Anne Western, says that reducing the pay rise for the lowest paid workers from 30p to 5p will continue to "squeeze" those at the bottom the hardest.

She told the Burton Mail: "The lowest paid workers will now get 5p extra instead of 30p.

"I am very concerned for all the people who are already under pressure and financial hardship, having to use foodbanks.

"The people that will be hit the hardest by this are those on the lowest salary, continuing to squeeze those at the bottom the hardest, this would be people such as cleaners, school catering staff and midday supervisors.

"These are the same people that are just about to be hit by an extra one per cent council tax increase."

Leader of the Tory-led county council, Conservative Councillor Barry Lewis said that "difficulty decisions" have had to be made following on from the previous Labour administration.

He said: "We are having to make very difficult decisions with council finances and with the implications of the decision taken four years ago by the previous administration to pay the Living Wage, which gave larger pay increases to those employees at the bottom of our pay scales.

"For example, an employee at the bottom of the council’s pay grade 2 has received a 38% rise on their net pay since 2010, and an employee at the bottom of the council’s pay grade 5 has received a 24% increase in their net pay since 2010.

"These pay rises are much higher than the rate of inflation over the same time period – the Consumer Price Index including housing costs rose by 18%.

Councillor Barry Lewis, leader of Derbyshire County Council
Councillor Barry Lewis, leader of Derbyshire County Council

"Employees higher up the pay scales have received much lower percentage pay rises in the past eight years - an employee on grade 12 has received a 9% increase in net pay.

"If the pay offer is accepted then every employee will receive a pay rise."

Derbyshire County Council cabinet members are set to debate the Living Wage and other budget proposals tomorrow, January 25.

Staffordshire County Council is set to announce its budget proposals within the next week, it will be debated on February by cabinet members.