§ Mr. SoleyTo ask the Chancellor of the Exchequer (1) for what reasons London weighting for civil servants has not been altered for the last two years;
(2) whether he intends to increase London weighting for civil servants;
(3) whether the civil servants' claim for additional London weighting will be submitted for independent arbitration;
(4) whether it is his intention to end London weighting payments to civil servants.
§ Mrs. Gillian ShephardThe Government's general policy is that pay should be based on what is required to recruit, retain and motivate within what is affordable. Over the past two years, over £87 million has been spent enhancing London pay, in addition to national pay increases. This represents an increase of over 50 per cent. in the London element of the pay bill. The money has been spent on special London pay points for most civil servants in the capital and on local pay additions which focus on particular locations experiencing recruitment and retention difficulties. Unlike London weighting, both are targeted to ensure that public money is used most cost-effectively. Over the past two years, recruitment and retention rates in London have improved very significantly.
Against this background, there was no justification for an additional across-the-board increase in London weighting in either 1989 or 1990. The Government's intention is to continue the policy of setting London pay in accordance with what is required to recruit, retain and motivate and, where appropriate, to target increases in the London element of pay to ensure that they produce the best value for money for the taxpayer. There are no plans to end London weighting.
I have agreed to meet the Council of Civil Service Unions in the new year to discuss its request for arbitration on its 1990 London weighting claim.