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Osborne plans regional pay rates for public sector

George Osborne is expected to announce plans to pay lower salaries to public sector workers in less expensive parts of the UK in his budget on Wednesday.

Scant details are currently available beyond last Friday’s Treasury briefings to the press. A clutch of media reports over the weekend suggest that the chancellor intends to start the process in three Whitehall departments in the coming financial year, as part of a phased introduction. The first posts to be considered for localised pay are expected to be:

  • Department for Work and Pensions (100,000 staff)

  • Home Office, including Border Agency (21,000)

  • Department for Transport, including the DVLA in Swansea (16,000).

Osborne will say that the Treasury intends to spread the initiative beyond the civil service in the years ahead.

Want to know more?

“Unions condemn regional changes to public sector pay”, by Damien Pearse and Patrick Wintour, guardian.co.uk, 17 March 2012: www.guardian.co.uk/society/2012/mar/17/unions-condemn-regional-changes-pay

“Public servants in poorer regions to get lower pay”, by Patrick Wintour, guardian.co.uk, 16 March 2012: www.guardian.co.uk/society/2012/mar/16/public-servants-poorer-regions-lower-pay

“Union fury over public sector pay plans”, bbc.co.uk, 17 March: www.bbc.co.uk/news/uk-17411117

“National pay rates will be scrapped in budget”, by Christopher Hope, telegraph.co.uk, 16 March 2012: www.telegraph.co.uk/finance/budget/9149748/National-pay-rates-will-be-scrapped-in-budget.html

Date 19/03/2012

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