Formula pay rises deliver differing results

Recent pay increases monitored by the LRD Payline database have delivered a variety of different results, depending on their pre-agreed “formula” for the 2021 pay rise, where simple Retail Prices Index (RPI) and Consumer Prices Index (CPI) links were not the only options:

• Govia Thameslink Railway (GTR): 2.0% based on RPI inflation for February 2021 (1.4%) underpinned by a minimum increase of 2%;

• Keolis Amey Docklands: 2.25% based on the RPI for March 2021 (1.5%) plus 0.25%, underpinned by a minimum 2%, but with an additional 0.25% for staff with salaries below £30,000;

• London Underground Ltd: 1.6% based on the RPI for February 2021 (1.4%), plus 0.2%;

• National Assembly for Wales: 2.6% reflecting increases in full-time median earnings in Wales (Annual Survey of Hours and Earnings, ASHE);

• Northern Powergrid (Technical): 1.84% based on average CPIH inflation (which includes a housing element) plus 1%;

• Pladis (United Biscuits - McVities) Harlesden: 2% based on RPI plus 0.25%, but underpinned by a minimum 2%;

• SGN C Business: 1.4% linked to CPI inflation; and

• Suez (Doncaster Metropolitan Borough Council): 1.6% based on the RPIX (which excludes mortgage interest rates) for January 2021.