The biggest bout of industrial unrest for years has seen tens of thousands of council workers and civil servants go on strike in bitter disputes over pay.

A walkout by members of three unions has led to the closure of schools, libraries, museums and civic offices across England, Wales and Northern Ireland this morning, while refuse collections have also been cancelled and a host of other services disrupted.

Unison and Unite said they expected more than half a million workers to join the 48-hour walkout today and tomorrow in protest at a rejected 2.45% pay offer.

Council workers are set to stage rallies in towns and cities across the country today during the strike, which will heap more pressure on the Prime Minister as he grapples with the UK’s economic problems.

Yesterday’s increase in the Consumer Price Index to 3.8% and RPI inflation to 4.8% heightened the resolve of workers to secure a bigger pay rise this year, said unions.

Dave Prentis, general secretary of Unison, said: “The pounds in local government workers’ pockets are turning to pennies. The cost of everyday essentials like milk, bread, petrol, gas and electricity are going through the roof - our members cannot afford to take another cut in their pay.

“Strike action is always a last resort but we have been left with no choice. Local government employers are sitting on £3 billion worth of efficiency savings made by our members they could use to settle the strike now. There is no need to ask the Government for more, no need to put up council taxes and no need to cut jobs or services.”

Unite national officer Peter Allenson said: “The blame for this dispute and the disruption to essential services sits squarely on the shoulders of the local government employers. The public will ask why a pay cut is forced on some of the country’s lowest paid workers while their employers hoard multi-millions in savings.

“Neither though can central government sit on the sidelines doing nothing. With 61% of local authority income coming from central government, they have clear responsibility to ensure these workers earn a living wage.”

Local government employers reiterated that the 2.45% was the final offer, warning that a bigger rise would have to be funded through higher council taxes or cuts in services.

Jan Parkinson, managing director of the local government employers, said: “It is disappointing that the unions are taking staff out on strike when only 7% of them voted for industrial action. Council workers will lose two days’ pay and many of them can ill-afford this.

“The settlement on the table is affordable to the council tax payer and will also make sure local government continues to be an attractive place to work. Employees on the lower grades will also receive an extra £100 a year, which equates to an overall pay increase of 3.3%.”

Commenting on union claims that councils are sitting on money kept in reserve that could be used to pay people more, Jan Parkinson said: “The whole point of contingency funds is to make sure that in lean times council services still get provided to the most vulnerable in society.

“The rising costs of oil, petrol and diesel have increased the cost to councils of providing local services by £239 million in the last two years. Local authorities are already having to dip into these emergency funds in order to protect front line services.”

Meanwhile, in a separate pay row, members of the Public and Commercial Services union, including driving test examiners and coastguards, will also take industrial action in the next few days.

Driving test examiners will strike today, while staff at the Valuation Office Agency will take industrial action today and tomorrow. Home Office and Land Registry workers will strike for part of Friday, coastguards will launch a 48-hour stoppage on Friday while employees at the Identity and Passport Service will strike for 72 hours from July 23.

Meanwhile, London Underground cleaners and their supporters will step up their demand for a pay rise when they stage a protest outside City Hall today.

The Rail Maritime and Transport union said the cleaners were receiving rates as low as £5.50 an hour despite backing from mayor Boris Johnson for public sector workers to receive the so-called London Living Wage of £7.45 an hour.

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