Saturday, March 17, 2012

They’ve got land, give them money

National pay rates will be scrapped in budget

Pay by postcode - public sector workers to be paid according to the price of their house under Osborne's latest plan. If you live in a poor area, you'll get a lower salary than if you live in a wealthy area.

Posted by stuartking @ 10:56 AM (1788 views)
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12 thoughts on “They’ve got land, give them money

  • mark wadsworth says:

    Nice one.

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  • It will mean if you are a police officer in the stockbroker belt of leafy Oxfordshire, Buckinghamshire or Surrey, you can expect more money than if you are an officer in Handsworth, Toxteth or Tottenham

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  • stillthinking says:

    The Spectator makes the point that breaks up the unions, which currently collectively bargain (refuse to work) nationally.

    I think though that this is probably going to save a substantial amount of money, with a knock on effect on pension liabilities, because London salaries are applied nationally. The majority must be affected though, particularly as New Labour punted up unlimited state jobs in their heartlands (60% in some area I remember).

    But this only makes sense if Osbourne sees inflation coming. IF inflation is about to collapse into deflation as the BoE keeps maintaining, there would be no reason to do this. Maybe he has some wage spiral evidence the rest of us lack.

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  • markj69 str05 says:

    stillthinking, ditto. Savings will only be realised in the future when salaries increase. Wage inflation for the private sector?
    Can’t see it myself, the economy is static, and we still haven’t got to the bottom of the financial crisis.

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  • So if you live in an area with extremely high house prices due to an abundance of holiday homes you’ll be able to negotiate a higher wage than now?

    No, didn’t think so…

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  • Cheekie Charlie says:

    I think this is based on the average private sector wage so in the city of london you’re quids in!

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  • Skeptical First Time Buyer says:

    We will have inflation and deflation. Deflating assets (houses, comercial property, land values) as the bubble continues to unwind and ongoing inflation of the essentials as price of oil and food rises. The pound will continue to be deliberately devalued relative to our competitors in europe, and this will result in export sector jobs growth and wage rises. Public sector and it’s dependents will see wage falls.

    Cut a long story short, look at the distribution of salaries between professions in the 70s. If you are now earning relatively more compared to other professions than back in the 70s expect no pay rises, and vice versa.

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  • letthemfall says:

    This is just the latest wheeze to cut already modest incomes (helps reduce tax for the highest paid of course). What this means is a pay freeze for everywhere but the southeast, and no doubt below inflation pay rises there. Incidentally, public sector pay as a share of national income is now below the average of the last 40 years, and recent increases are down to the recession.

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  • We might be able to recruit people if the public sector is peeing in the same pot as my firm, in other words, we have a level playing field when it comes to pay rates.

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  • An alternative way this could be done, to avoid negotiating over pay rates, would be to have tax codes based on post code areas. For example, those living in poorer areas would be taxed more so that extra cash can be given to those living in the wealthier areas. A sort of Robin Hood tax in reverse. So, while public sector workers will get the same rate for the job wherever they work, the government can claw back some from those who live in ‘grim up north’.
    It makes good Tory sense, I would have thought, after all the poorer areas generally need more services and it is Tory thinking that those who use services the most, should pay the most for them. Similar thinking supported poll tax and still exists with council tax – that’s why Labour-run local authorities where there are high levels of unemployment and other social problems charge higher council tax rates than the wealthier parts of the south-east – basically it’s an extra tax levied on the less well-off.

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  • Thought you were retired mr g. Or do you maintain an interest in “your firm”? Simple way to level the playing field. Increase your pay rates. It’s the market, don’t you know.

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  • @LTF “Simple way to level the playing field. Increase your pay rates.”

    That’s fine if there is a commensurate increase in productivity, unfortunately this rarely happens in the UK unless the pay increase is a “piece rate” based on output and therein lies a major reason for much of our industry going overseas.

    Yes, I am retired, I was speaking retrospectively.

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