Unions represented on the Joint Negotiating Committee have agreed the employers' offer of a 2.95 per cent pay increase for youth workers backdated to 1 September this year. But they failed to agree on levels of extra pay for workers in London and the surrounding counties.
Current annual allowances for London youth workers range from 675 to 2,640.
But unions want at least 3,500 for youth workers in inner London, comparable with the rates allowed for teaching and health professionals.
Doug Nicholls, general secretary of the Community and Youth Workers' Union, said: "Negotiations appear to be at an impasse."
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