The Local Government Association confirmed that council workers in England, Wales and Northern Ireland will face a pay freeze for the third consecutive year. The pay freeze will affect 1.6 million local government employees in 2012-2013.
On receiving the news, the GMB union hit out saying it was a "deliberate political choice" which is designed to keep council tax bills down.
The Local Government Association said councils were being left with little choice in the matter as a result of shrinking government funding on a local level in addition to rising costs.
LGA, spokesperson Sarah Messenger said it had been "a very difficult decision to make but it is the right one for council tax payers and the workforce as a whole. Increasing pay would mean more job losses and cuts to the services people need".
She continued: "While the financial outlook for councils is bleak, we are keen to begin discussions with the unions on a package of reform of pay and conditions that may enable us to avoid a fourth year of pay freeze in 2013."
The pay freeze follows an announcement by the chancellor George Osborne in November 2011 that the wider public sector pay freeze with is due to end in 2013 would then be followed by a 1% cap on rises for the next two years.
Local government pay is negotiated separately between the employers and Unions, via the National Joint Council for local government services.
The three key Unions for the sector had asked for a pay rise, especially for the lowest paid employees.
Brian Strutton, GMB national officer has said there may be industrial action over this issue should employers not agree to go to arbitration.
He said: "The politicians who lead local councils are a disgrace to the workforces they employ for offering no pay rise for the third consecutive year while feathering their own nests. Council leaders pay has shot up and councillors vote themselves higher allowances while the carers, dinner ladies, dustmen, social workers, school support staff and all other council workers serving their communities will have seen their pay fall in real terms by over 15%.
Debt Problems For Local Council Employees
It's not surprising that local council employees would face financial hardship as the cost of living continues to rise but their pay remains static. The costs of living in the UK is expensive and sometimes local council employees need debt and money advice too.
The local council or Citizens Advice Bureau provide a face to face service to help people in local communities but sometimes people prefer to ask for debt advice over the telephone.
At Debt Support Trust we provide a confidential route to debt advice. Anybody seeking debt help can call Debt Support Trust on 0800 085 0226.
Debt Problems With Local Council Debts
If you have a local council debt problem, for example with your council tax then we can help you negotiate and arrange token payments. Should you have other debts then we would look at the debt problem as a whole and provide the pros and cons to each of the available debt solutions.
Our volunteers and advisors are friendly and can be contacted for debt advice on 0800 085 0226.