Staff in inner London need over £3,000 more than other
employees to compensate them for the higher cost of living in the capital.
The Bargaining Report warns that staff need £3,340 a
year extra on their salaries and many employers do not offer this level London weighting.
Those living in Greater London need £1,074 in additional salary.
The report by the Labour Research Department shows that employers
only provided sufficient weighting in 31 of 94 pay agreements in inner London. The
situation was worse for manual workers in inner London with only two out of 49
agreements having an allowance at the level of the index figure.
The research shows that property values present the biggest
financial hurdle for employees, with the average house in greater London
costing £196,437. The average house in England and Wales costs £110,570.