LOCAL government workers in South Lakeland and Cumbria can expect bigger wage packets from next month after this year's pay dispute was finally settled.

The deal will mean around 600 staff at South Lakeland District Council, and 5,000 at Cumbria County Council, receive a rise amounting to 7.7 per cent between now and 2004.

The lowest paid salaries will go up by 10.9 per cent over the next two years, after a 20p increase in the minimum wage to £ 5-an-hour, and an additional 33p-an-hour extra from April.

Cumbria County Council said the settlement means the authority will have to pay an extra £625,000 from this year's budget.

SLDC said the cost had been budgeted for and would represent £410,000 or the equivalent of a 3.7 per cent increase on the pay bill, and £480,000 for 2003-2004, or 4.4 per cent extra.

CCC spokesman Brian Hough said the deal would not "break the bank," and that the council had already budgeted for a pay settlement of between three and 3.5 per cent.

Some departments would be asked to find a share of the cost by making efficiency savings.

CCC's Cabinet will meet on October 15, when members will consider what effect the settlement will have on the fortunes of Cumbria Contract Services, which is already facing an overspend of nearly £1 million.

Andrew Taylor, human resources manager at SLDC, said its budget too had been set to absorb the rise so there would be no threat to services.

The settlement in the pay dispute follows the conclusion of negotiations involving the Advisory, Conciliation and Arbitration Service.

Stewart Moules, branch secretary of Unison in Cumbria, said: "Our view is that it is clearly to be welcomed and shows local government workers are worth more than the Employers Organisation originally offered."