OLDHAM Council is proposing an increase of 3.99 per cent to council tax for 2022/23 which would see the average household across the borough pay around 88p more a week.
The increase includes the 2 per cent Adult Social Care precept and 1.99 per cent for the local authority’s core services.
It aims to protect vital services such as social care and youth work, rewarding carers who supported the community through the pandemic and continue investment in cleaning up the borough’s streets.
The pandemic has been particularly hard for the lowest paid workers in Oldham so the council is using 1 per cent of the proposed rise to pay the Foundation Living Wage (£9.90) to all carers, whether directly employed or in the care supply chain.
Over a 40-hour work week (average for the care sector) the rise will mean an extra £16 a week in a care worker’s pocket – or £768 a year.
Women make up 85 per cent of the care workforce with an estimated 75 percent having families. It will also have a huge knock-on positive impact for the local economy.
Meanwhile, the 1.99 per cent council tax rise will pay for core services such as street cleaning, highways, youth work and all the other services the council delivers for residents and businesses, as well as the wage increase for lowest-paid workers.
Those who currently receive the Minimum Wage or the National Living Wage will now receive the Foundation Living Wage.
Councillor Arooj Shah, Leader of Oldham Council, said: “After over a decade of austerity, we are again having to make cuts to our budget, this year totalling £6m, and are left with no other choice but to meet the rising cost of continuing to deliver vital services, like caring for the elderly.
“When the Government calculates how much money to allocate local authorities, it assumes we will increase Council Tax by the maximum amount – making it impossible to do anything but.
“If we don’t do this, we leave a bigger hole in Council’s budget, meaning we would have to provide less, or strip back the essential services our communities rely on.
“In raising Council Tax, it’s vital we do right by carers and make special provision in this budget to finally pay them the Foundation Living Wage.
“We want to recognise the impact Covid has had, including on young people. We have chosen not to take a previously-agreed planned reduction in funding for Mahdlo and will be increasing funding in youth activities by £80,000.”
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.”
The budget proposals will go to the Council’s Cabinet on Monday, February 14 before being debated by full council on Wednesday, March 2 when the council’s budget for 2022/23 will be set.
Have your say on this year’s budget proposals and read in full at: www.oldham.gov.uk/budget
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