MILLIONS of pounds in savings are to be made by changing terms and conditions of thousands of council workers across the county, it emerged last night.

Council workers could be hit by reductions in redundancy compensation and an end to incremental pay rises.

Oxfordshire County Council, the county’s largest employer, yesterday set out proposals to change the terms and conditions of more than 20,000 council staff and teachers.

It said the measures would save £4m and help to limit the number of job losses at County Hall, with the council seeking to save £155m up to 2015.

Unison is now balloting members on the proposals. But they were described as “kick in the teeth” for Christmas by the union’s regional organiser Steve Waite.

The county is just one of a number of Oxfordshire’s councils in the process of steering through money-saving changes in the terms and conditions of staff.

Oxford City and South Oxfordshire and Vale of White Horse district councils are all holding talks with staff on a range of changes certain to hit workers in the pocket, as local authorities face cuts of between 25 to 30 per cent in central government grants.

The county council proposals centre on reducing the size of redundancy payments, certain to affect some of those to lose their jobs in the coming months.

Projected job losses at the county are currently put at 1,000. Car mileage rates are to be reduced.

At least 1,800 staff are expected to be hit by freezes in incremental pay rises, gained through experience within defined salary bands.

To reward long service, staff move up bands, although this element of the plan will not apply to teachers.

The package comes with public sector pay frozen for two years for those earning above £21,000 a year. Those earning below £21,000 will receive a set £250 pay rise over two years, under terms announced in George Osborne’s emergency budget.

County council leader Keith Mitchell said: “We understand the difficulties staff face in coping with the pay freeze and other measures to save money.

“We have always tried to work together with our staff and union representatives in Oxfordshire, and they deserve real credit.

“They have been mature and forward-thinking in their discussions with us.

“Our common aim is to release money that will make inroads into the level of cuts we will have to make, preserve services for the people of Oxfordshire and keep people in jobs.”

But Mr Waite described them as “draconian measures”, which had been forced on the council by central government.

He said: “Workers in the county are facing a double blow.

“Having already had a pay cut, they are now also facing reductions in their basic terms and conditions.”

A spokesman for South Oxfordshire and Vale of White Horse district councils said they were consulting on reducing redundancy entitlement for redundancies agreed after April 1 next year.

Cherwell District Council is proposing to extend the £250 pay rise to staff earning below £25,000.

City council spokesman Louisa Dean said: “We are currently consulting with the trade unions about the possibility of changing the terms and conditions for staff.

“We are looking at conditions including car mileage rates and incremental pay progression.”