Proposed regional pay policy to hit the North hardest
By Daniel Hunter
Wales, the North East and the North West of England will be hit hardest by the governments plans to regionalise pay according to the latest research from job search website Adzuna.co.uk.
Pay cuts of up to 20% could be expected in a number of UK town and cities as the government is urged by top economists to regionalise public sector pay - a move which could exacerbate regional income divides.
The Top 50 Cities and Regions in the UK were ranked by average salary using Adzuna’s comprehensive search index of over 500,000 live job ads. Adzuna also analysed specific job titles by region to determine regional differences in pay by job sector.
The study shows that private sector workers in Wales, North East England and North West England are paid at least 15% less than the national average. At the opposite end of the spectrum, Londoners earn nearly 24% above the national average - a statistic which has grown by 2% in the last 6 months alone. Meaning if the Chancellor’s pay policy is implemented, public sector workers can expect pay cuts of up to £5,000 in some sectors.
Hotel & Catering Industry workers in Hull (-54%), Finance Professionals in Swansea (-41%) & Bar Staff in Glasgow (-35%) are currently among the most underpaid in the private sector compared to the national average for these roles. The manufacturing industry in Wales also pays 17% less than the same industries in England, Scotland and N. Ireland.
While many areas of the UK struggle to keep up with national averages for their sector, the data shows huge salary premiums being paid for low skilled workers in London. Nannies, Cleaners & Call Centre staff are averaging salaries 30% above the national average in the capital.
This London premium, however, will not protect all London salaries if George Osborne takes on the advice of these top economists. The allowances paid to public sector workers in inner London (up to 20% of salary in sectors such as nursing) could come into line with private sector equivalents meaning pay cuts of up to 5%.
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