TUC: Government must recognise impact of localised pay

Almost two-thirds of people believe the introduction of regional pay could make it harder for schools in poorer areas to retain staff, a TUC report has found.

The poll found that 65% of those surveyed believed that if the Government established localised pay, staff would move to prosperous areas of the country with higher salaries.

In the survey, 75% of those questioned also felt that it was important for the Government to conduct an independent economic impact assessment on the possible consequences of regional pay before they continued with the measures.

The chancellor announced in the budget that some areas of the Government could be pressing ahead with plans for localised pay later on in the year.

The TUC stated that it was worried the Government has not considered the negative economic impacts that will emerge from this policy on both public sector workers and less affluent regional economies.

TUC secretary Brendan Barber emphasised that the Government had to pay attention to the findings of this research if they were to avoid placing greater pressures on communities and high streets.

‘Holding back the pay of public sector workers who live beyond the south east will simply drive down wages in poorer areas of the country, cause more business closures and significantly lessen the UK’s chances of growth.’