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Analysis of the most recent Labour Force Survey data (January-March 2013) by the think tank Policy Exchange reveals that there is still a significant gap between public sector and private sector pay, the amount varying dramatically from region to region.
The paper found that:
The report, written by a former Treasury civil servant, argues that the variation in pay has arisen because of the system of national pay bargaining, which means that workers are paid the same amount regardless of where they live. The paper recommends abolishing national pay deals and moving to a system which can reflect local labour markets and reward performance. It also urges the government to push ahead with its plans to remove automatic pay uplifts across the public sector.
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