[LRD centenary logo] Labour Research Department
Press releases
Follow us on twitter
Find us up on facebook
Sign up to LRD's monthlyenewsletter
Podcasts and webinars
Data protection
Your privacy
All content copyright LRD 1994-2021
Company Number 11429402

20 July 2000

London workers need at least ?3,287 more a year
People working in inner London need at least ?3,287 a year - and those in outer London ?1,028 more - than those living outside the capital to compensate them for the higher cost of living. This is the key finding of the latest annual survey of London weighting in Bargaining Report, the magazine for trade union negotiators.

Since London is the most expensive city in the European Union it is hardly surprising that those suffering the costs are seeking increases in pay to compensate them. Whether the extra pay is described as London Weighting, London Allowance or is simply included in basic pay, the case for an increase is clear from the survey.

The survey includes a formula known as the London Weighting Index which was devised in 1974 and seeks to calculate the additional costs of housing and travelling to work in London. The calculation was originally done by the government but when they abandoned doing so the work was taken on by the Labour Research Department. In addition to presenting the index the survey also includes figures for allowances paid by employers to their staff in London.

The survey covers over 300 payments for inner and outer London weighting and allowances covering other areas around London and the South East as well as special payments for working further afield.

Less than a third of inner London payments for non-manual workers and only one manual worker payment was above ?3,287 - the index for inner London. Two thirds of outer London payments covering non-manual workers and 60% of those covering manuals were above ?1,028 - the outer London index.

Notes to editors

Bargaining Report is published by the Labour Research Department, 78 Blackfriars Road, London SE1 8HF, price ?3.30 to LRD affiliates, ?4.10 to non-profit making organisations and ?16 to businesses.
The Labour Research Department is an independent trade union and labour movement organisation founded over 80 years ago. Around 2,000 trade union organisations, including 54 national unions representing 99% of total TUC membership, are affiliated.
For further information contact Dave Statham on 020 7902 9809 or email dstatham@lrd.org.uk

Return to top of page