HC Deb 16 July 1974 vol 877 cc90-1W
Mr. Churchill

asked the Secretary of State for Employment if he will introduce a Greater Manchester weighting allowance; and if he will make a statement.

Mr. Booth

Under the system of voluntary bargaining, to which it is the aim of the Government to return, negotiators would be free to consider whether they were in favour of extending a system of differentials in public sector agreements outside London. Arguments against doing so have, however, so far been accepted by most negotiators. The practice of paying London weighting allowances in the public sector is of long standing and is based on the principle of the need to compensate for the higher costs incurred by persons working in London compared to the remainder of the country. Both the National Board for Prices and Incomes in 1967 and the Pay Board in its recent inquiry have confirmed this need and established by detailed survey that the average costs, principally on housing and travel to work, are significantly higher for those working in London than elsewhere in the country. There are bound to be differences between costs in other places but they are not as great as the London comparison and public sector negotiators have not in the past considered it necessary to introduce weighting in other areas.

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