STAFF at two of Oxfordshire’s district councils will have their pay frozen to save taxpayers about £650,000 a year.

Anyone earning more than £25,000 a year at South Oxfordshire and Vale of White Horse councils will not get a pay rise in the 2011-12 financial year, under an agreement with trade union Unison.

Only those earning less than £25,000 will get an increase, which will cost the councils a total of about £33,000.

Unison spokesman Ian Crick said: “Members are paying the price for the banks’ excessive risk-taking, the former Government bailing out banks, and the coalition Government cutting too far and too fast.

“Unison members have agreed to these proposals so services can be maintained and job losses minimised.”

David Buckle, chief executive of both councils, said: “This will hit staff hard in their pockets at a time when inflation is running well ahead of predicted levels and showing no signs of falling.

“But Unison understand that with nearly 30 per cent of Government grant going over the next two years – nearly £5m – something has to give.”