HC Deb 26 November 1991 vol 199 cc771-2
10. Mr. Simon Hughes

To ask the Secretary of State for Employment what is the average level of London weighting allowance paid to employees in (a) inner London and (b) outer London at the latest date of which figures are available.

Mr. Forth

The Department does not collect data on London weighting allowances.

Mr. Hughes

The Minister is probably aware that the additional cost of living in inner London is more than £4,000 per year and in outer London more than £3,500 per year. Given that the private sector median allowance is £1,500 extra in inner London and £1,000 extra in outer London, will the Government ensure that their public sector pay policy follows the private sector and that they compensate people who work in London for the substantial additional cost of living in London?

Mr. Forth

It would be fascinating to speculate on why the cost of living in inner London is so high. The hon. Gentleman and I might be able to agree that it is not unadjacent to the fact that so many inner London authorities are controlled by the Labour party. The hon. Gentleman knows that questions relating to civil service pay determination and detailed pay arrangements are a matter for my right hon. Friend the Chancellor of the Exchequer. I am therefore unable to answer this question today, but I will bring the hon. Gentleman's point to the attention of my right hon. Friend the Chancellor.

Mr. Brazier

Does my hon. Friend agree that London is only one of several areas where costs are wildly out of line with the national average—sometimes higher and sometimes lower? It would be healthy for public services and for dole queues if we could move away from national wage bargaining in a variety of areas.

Mr. Forth

My hon. Friend makes an important point. Average earnings in London are about £100 per week higher than in regions outside London. The marketplace has, therefore, already taken some account of the differentials. My hon. Friend is correct—it must make sense to have pay bargaining as near as possible to the point and location of work so as to make the labour market work as efficiently as possible and to reward people as fairly as possible.