Report calls for big rise in London weighting

PAY DATA

Report calls for big rise in London weighting for public sector workers

Dramatic increases in salary levels for the capital's public sector workers are needed to solve growing difficulties in recruitment and retention, concludes a nine-month investigation by a committee of experts appointed by the Greater London Authority.

The advisory body says that London weighting - an allowance first introduced in the 1920s to bridge the gap between house prices and salaries - no longer seems to be working. Last reviewed in 1974, the justification for London weighting was to ensure that an employee would receive a comparable salary for working in the city, compared with elsewhere in the country. "While this remains true today, it is unfortunate that the Pay Board's method of calculating London weighting has not stood the test of time," the committee says.

Main recommendations

The committee's report proposes what it considers to be a fair method of paying public sector workers the extra that they need to work in London. Its key recommendation is that London weighting in the public sector should be based on comparisons with the premia paid in the private sector - rather than calculated by working out the increased costs of living and working in the capital.

Under the proposals, public sector workers in inner London would receive as much as 37% more than their colleagues outside the capital.

What you will find in this report

This extensive report includes a wealth of detail on employers' approaches to London allowances - in both the public and the private sectors - and will assist anyone reviewing their policies and practices on location payments.

In-depth research

It also includes research conducted on behalf of the London Assembly by:

  • Employers' Organisation for local government
  • Incomes Data Services
  • National Economic Research Associates
  • University of Warwick Institute for Employment Research.

Want to know more?

Title: Report of the London Weighting Advisory Panel, June 2002, Greater London Authority.

Availability: The 245-page report is available for download in PDF format, free of charge, at the London Assembly web site . . .

www.london.gov.uk/approot/assembly/reports/index.jsp#lonweight

For further information, contact Carmen Jack, tel: 0207 983 6542, email: carmen.jack@london.gov.uk.

To find out more about the London Assembly, jump to . . .

www.london.gov.uk/approot/assembly/index.jsp

Posted 8 July 2002