Published: Wednesday, 02nd March 2022
A PAY rise for care workers, increased funding for youth work and a million pounds a year to keep Oldham's streets clean were at the heart of the budget approved by Oldham Council tonight.
We're doing things differently. Our budget for 2022/23 prioritises the services that make the most difference to people’s lives - after being drawn up following feedback received from residents and businesses on the doorstep and through the Big Oldham Conversation.
Councillor Arooj Shah, Leader of Oldham Council, said: “The budget approved tonight is a budget with the needs of Oldhamers at its heart. We're raising the wages for our lowest paid while also investing in those services you've told us matter the most - such as keeping our streets clean through the Don't Trash Oldham campaign, caring for our most vulnerable, and providing excellent services for young people and their families.
"The last two years have been incredibly tough for many Oldhamers. We wanted to recognise the impact Covid has had in the borough, including on young people. That's why we've chosen not to take a previously-agreed reduction in funding for Mahdlo, and will be increasing funding in youth activities as well; together representing an investment of around £180,000 in youth services this year.
“But we also can't forget that we're doing this in an extremely challenging financial climate. We've been through 12 years of austerity and relentless central Government cuts to council budgets, we have little choice but to raise general Council Tax if we want to protect vital services for our most vulnerable.
"That’s why we’ve reluctantly approved a 3.99% Council Tax increase - a 1.99% core increase plus another two percent Adult Social Care precept, which is expected by the Government to help fund social care support for the most vulnerable in our borough. For most people this increase will be offset by the national £150 Council Tax refund. And in doing this, it's also vital that we do right by our lowest-paid workers and make special provision in this budget to finally pay them the Foundation Living Wage - a pay rise of around £770 a year, which will not just benefit paid carers and their families, but Oldham's wider economy."
All council staff and contractors will now be paid at least the Foundation Living Wage of £9.90 an hour, to be introduced from October this year. This will mainly provide a boost to paid care workers, who have been on the frontline of the Covid pandemic, who will see their hourly rate rise to 40p an hour more than the national minimum wage.
To support residents who feel the pinch of the cost-of-living crisis that has seen the price of energy, fuel and other basics increase sharply in recent months, we haven’t changed the Council Tax reduction scheme, despite increased costs as more people become eligible. We’ve also set this year's council housing rent increase at 2% instead of the Government suggested 4% for this year.
Tonight's proposals have been backed by care organisations, trade unions, and bodies including the Living Wage Foundation.
Katherine Chapman, Director of the Living Wage Foundation, said: "We are delighted to hear of Oldham Council’s move to uplift over 4,300 frontline care staff in Oldham.
"Over the past two years, adult care workers have been instrumental in keeping our society healthy and functional, and we welcome Oldham Council’s move to uplift them to £9.90 an hour.
"The extra £768 a year will make a huge difference for workers, as they face rising costs of living. We call upon all businesses who are able to do so to consider joining Oldham Council, and accrediting with the Living Wage Foundation."
UNISON Oldham Local Government branch secretary Tracy Delaney said: “We are delighted that Oldham Council have taken this decision to support our care workers. Throughout the pandemic, Oldham’s care workers put others before themselves and it is only right that they receive a living wage for their vital work.
“It is indefensible that care workers up and down the country are only paid the minimum wage for one of the most important jobs in society, but this is the impact of 12 years of Government cuts to council budgets. We hope that Oldham Council’s decision marks the beginning of the tide turning and that in years to come, care workers feel valued and recognised for the crucial role they play in our communities.”
The full budget proposals and papers from tonight's meeting are available online here.