THE cost of burying and cremating the dead is set to rise to help fund a 'fair pay' structure for Chester City Council's workforce.

Car park charges may also rise under proposals being considered to finance the ongoing cost of the extra pay for some of the 740 city council workforce.

Last week The Chronicle revealed that some of the council's lowest paid staff would get windfalls of up to £10,000 in compensation for under-payments going back six years.

The cost of the windfalls - as a result of the statutory Single Status pay review - is covered by a £1.5m fund.

The prospect of increasing cemetery and crematorium charges was discussed at last night's council cabinet meeting as it looked at ways of covering forecasted budget shortfalls.

The planned increases to next year's city budget come as Cheshire taxpayers are set to be hit in the pocket following a Government funding oversight.

Cheshire County Council has been ordered to hand back £1.2m after mistakes in the calculation of population figures for the 2001 census led to an overpayment of central funds.

The money will be taken out of the council's 2005-06 settlement and could mean large Council Tax increases. Cuts to services such as education and transport could be made.

An insight into how Chester City Council is to afford its wage review is contained in its medium term financial strategy framework for 2005-08.

The council is facing a £2.1m bill to fund new staff salary scales over four years.

It has spent 18 months employing the services of outside consultants who have interviewed members of staff to evaluate their job descriptions and pay.

In a report to last night's cabinet, Cllr Paul Roberts - portfolio holder for resources - says: 'The strategy assumes that income from fees and charges will raise an additional £150,000 per year.

'This is based on overall increases across the board of 3%. So far, we have plans to generate an extra £16,000.

'Reports on car parking, cemeteries and crematorium and building control to be brought to the cabinet in January will ensure the target is met.'

The authority plans to save £1.25m in people costs within a five-year period, through 'doing less, doing things differently and more efficiently'.

As a result, a possible jobs freeze may hit the council with posts re-evaluated once a member of staff leaves.

The council is also looking at how it can get a better rental return from its properties in the city, such as the derelict cattle market in Bumpers Lane, Chester.

Chester City Council's cabinet will announce its initial budget proposals in January.