The Greater London Assembly has launched an investigation into how workers are compensated for the higher costs of living in the capital.
The study will be the first time in 28 years that an independent panel has been set up to look at the whole issue of London weighting.
London Weighting, which was introduced in the 1920s, is intended to bridge the gap between London house prices and salaries.
However, many London employers pay an arbitrary level or use recruitment and retention payments and market supplements, instead of offering London weighting.
Last year, the assembly’s Affordable Housing committee recommended that employers should do more to help workers afford London housing.
Bill Knight, chair of the London Weighting Advisory Panel set up by the assembly, said: “Many people say they can no longer afford to live in the capital and this is a really big problem affecting recruitment and retention of staff in some areas of London.
Among the panel’s advisers will be Geoffrey Roberts, who co-authored the 1974 Pay Board Report on London Weighting.
EGi News 16/01/02
