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Drop regional pay plans, Welsh Government tells coalition

Official figures show UK Government proposals to introduce regional difference in public sector pay are 'flawed' and should be dropped, according to the Welsh Finance Minister. Jane Hutt says the figures undermine claims that there's a large gap between pay in private and public sectors in Wales.

In a written ministerial statement, Ms Hutt says the research by the Office of National Statistics shows that there is no definitive way of estimating any such gap.

This new research confirms our view that regional, or 'local-market', public sector pay policy would not only be misguided; it would also be unfair. It would target women and the lowest paid workers, exacerbating pay gaps between men and women. The Welsh Government makes no excuses for trying to protect the low paid and promoting equality by reducing, not increasing, the gender pay gap and I call on the UK Government to immediately withdraw any suggestion that it endorses such a misguided and flawed policy.

– Jane Hutt AM, Finance Minister

A Welsh Government source said:

We have always maintained that regional pay was an ill-conceived idea. With every month that passes, it's becoming increasingly clear this move would be a disaster on all levels for public sector workers in Wales - and indeed all other parts of the UK, outside of the South East of England. The time has come for the UK Government to drop this idea once and for all.