Call for national pay reform

Individual negotiations on pay in local areas will help with recruiting staff in both the public and private sectors, according to leading economists.

An open letter, signed by academics from UK universities, including Cambridge University, London School of Economics and King’s College London, has called for national pay rates in the public sector to be reformed, with a proposal for each location in the UK to keep its total public sector pay bill, while allowing individual wage negotiations.

The letter stated that local wages should be decided locally, which would allow any savings made to be used to enhance local services.

It also said that the current system of national pay can result in difficulty recruiting staff into the public sector in some areas because of low wages.