Under the new regime, civil servants’ pay would be regionalised to represent the costs of living in that area and to make sure the DCA can attract and retain people in their jobs.
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Neil Johnson, head of PR and policy at the Building Societies Association,
said: “It is a reflection of the problem that high prices are causing for people so the government introduction of regional pay shows it is now feeling it in terms of its staff. It’s common for private companies to pay their employees more if they work in high value areas but it is interesting the government has started doing it now.”
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The news has been met with derision from unions but experts believed it was nothing new, and pointed to London weighting.
Bob Sturges, director of communications at Money Partners, said:
“London has a vibrant jobs market so while it makes sense to pay more, the size of increase is too marginal to impact on affordability in the South East. But it will make people more willing to accept higher travel costs, which will cause a ripple-out effect in the commuter belt.”
