Newcastle Council reconsiders £3,800 staff pay cut

Newcastle City Council is reconsidering a move to axe shift allowances, cutting some staff pay by more than £3,800 per year.

The news comes after the council announced it needed to make £30 million in savings by the end of 2017. Initially plans involved ending allowances paid to weekend and night workers which would affect 1,862 staff and save £2.5 million.

However, it has now outlined that it may have found alternative savings initiatives which are in the process of being consulted.

The alternative saving measures include a further reduction of management posts and improving the performance of the council pension fund so planned financial support for the scheme can be reduced.

The authority also said because the statutory living wage announced by the government was lower than expected the costs of some services costs would be lower than forecast.

Cabinet member for resources, Veronica Dunn, said the proposed cuts had been ‘a last resort’.

She said: ”It is good news that we have found an alternative approach. The staff themselves have responded constructively, coming forward with savings proposals of their own - many of which we are actively considering.”