London authority reviews weighting

The system of paying London Weighting allowances to compensate workers for the extra costs of living and working in the capital is to be reviewed for the first time in 28 years.

An independent panel set up by the Greater London Authority will take evidence over the next five months on how best to accommodate for higher housing, travel and consumer costs and wear and tear, and how London pay differentials contribute to staff recruitment and retention.

The setting up of the review reflects mounting concern over recruitment, with a number of public sector groups like the Metropolitan Police having being awarded increases in weighting payments in recent years. Analysis of labour market statistics has previously shown that, in general, earnings are 27% higher in London than the rest of the country, when other factors that might influence pay levels have been taken into account.