Latest Public Sector News

24.09.12

Council pay gap diminishing – One Society

The gap between the highest and lowest paid council staff is shrinking, according to new research.

The think tank One Society found that over 20% of local authorities in England and Wales were paying staff a minimum of the living wage, with over 10% taking steps to reduce chief executive pay.

A further 10% have limited the pay ratio between the highest and the lowest staff.

The living wage across Britain is £7.20 an hour, which rises to £8.30 an hour in London. Yet the national minimum wage for workers aged over 21 is £6.08 an hour.

Duncan Exley, director of One Society, said: “The living wage movement has a very strong power base in London, but to see it now spreading outside is quite remarkable. People had the idea that basic local authority rates were fine outside of London but that is being broken down now.

“Local authorities are large employers and procurers of services, consequently their pay policies will have a significant effect on the wellbeing of local people and the local economy.”

A spokesperson for the Local Government Association welcomed the research and said: “This report confirms that councils are tackling unprecedented financial challenges in a way which is fair to local taxpayers and the workforce.”

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