Warning on regional pay rates plan

Updated: 
Women walking past Whitehall signWorkers in some cities outside London and the South East could suffer wage cuts of up to 17% under the Government's plans to introduce regional pay rates in the public sector, according to a new study.

Research by jobs website Adzuna.co.uk found that the West Country, the Midlands and the North of England will be hardest hit, especially cities such as Leeds, Liverpool, Belfast and Cardiff.

Tens of thousands of staff in government departments such as the Department for Work and Pensions, the Home Office and the Department for Transport could see their pay cut by up to £5,000 if regional wage rates are brought in, said the report.

Allowances paid to some public sector workers in inner London could also be cut, to come into line with lower private sector payments, according to the research.

Doug Monro, of Adzuna, said: "Workers will always be paid a premium where demand outstrips supply, but the changes could well affect the prosperity of the regions and lead to even more migration into an overcrowded London."