A modern day postcode lottery

June 14, 2012 1:29 pm

Imagine you’re running the country. Imagine some parts of the country are poorer than others – not exactly a stretch of the imagination.

Imagine that many of those areas had been decimated by the collapse of manufacturing industries, coal mines, steel works and shipyards. By a coordinated assault on British manufacturing that in these areas was a way of life.

Imagine that these areas were some of the worst affected by a global financial firestorm. One that started in America but soon swept through the financial sector necessitating billions in bailouts. Imagine that the recession this caused triggered surging unemployment in these areas.

Imagine that one area in particular saw their local bank at the epicentre of the crisis, costing more jobs still.

And imagine saying to those people, in those areas, who have suffered some of the worst effects of slash and burn economics, that you want to cut further. And cut specifically in those areas. You want to take money OUT of the local economies of some of the most deprived areas in the country. You want to slash the wages of some of the few stable and decent paid jobs available to these people.

Imagine that cruelty. Imagine the impact. Imagine no more. Welcome to Cameron’s Britain.

Welcome to the pay postcode lottery.

Under government plans announced in the budget, “regional pay” looks set to become a reality, with public sector pay being determined in part by the cost of living (or to put it another way – wealth) of the local area – as if the solution to balancing the books in Britain is to pay a teacher in York less than one in Plymouth…

An opinion poll released by the TUC and Survation today shows that 65% believe that lower pay in poorer areas will make it harder to employ and retain teachers in schools in those areas. That stands to reason. It’s shocking that it’s only 65%. Of course if you’re paying teachers less to work in poorer areas they’re less likely to want to work there.

It’s almost enough to make you question the sanity (or at least the numeracy skills) of the other 35%…

Education, as the West Wing character Sam Seaborne once memorably intoned is “the silver bullet”. Having good teachers and good schools can make a huge difference to life chances – especially in poorer areas. And yet we’re now faced with a policy that would mean schools in poor areas find it harder, not easier, to even hire or retain the staff they need at all.

Sadly and inevitably these plans are going to be discussed in terms of North vs South, and it is almost too easy to play the game that the Tories want to play, dividing working people geographically, setting teacher against teacher and nurse against nurse. But if anything regional pay will have even more perverse consequences than that. Two teachers could live on the same street, but by teaching in different areas could receive markedly different salaries.

A brand new workplace postcode lottery.

A one that will divide our country rather than unite it.

A one that will leave behind regional economies further decimated even than they already might be. Regenerated towns across Britain blighted by a lack of growth, a loss of demand, and a retreat from regeneration back to decline and decay.

A few years ago, Policy Exchange – the favourite think tank of the Tory leadership – argued that Northern cities were “beyond revival”. Let me tell you that’s nonsense. But try as they might this government are trying to make it a reality by stealth. And regional pay looks like a weapon in that fight.

  • http://twitter.com/KulganofCrydee Kulgan of Crydee

    I take it then that support for removing ‘London Weighting’ will be forthcoming from the left.  I am not a supporter of regional pay but in a sense, we already have it.  

  • SR819

    Look at the areas that are facing the most stringent local government spending cuts and the ones that are actually seeing real increases in spending and it’s clear that the Tories’ allegiance is to the upper and middle class areas, not the working class areas that rely most heavily on government spending. It’s clear class warfare, and we shouldn’t be afraid to say so.

    Labour must fight regional pay, as this sort of free market thinking in the provision of local public goods will simply exacerbate existing inequalities across regions. Ideally, we should promote wage equalisation across all regions, but I doubt Ed is radical enough to promote that. Instead we’ll get the usual criticism of Tory policy even though Ed’s policy doesn’t look all that different from Cameron’s.

  • http://twitter.com/JeevanJones Jeevan Jones

    > Education, as the West Wing character Sam Seaborne once memorably intoned is “the silver bullet”.

    Oh great, now I’m going to have to rewatch this scene, and unavoidably many others, on YouTube…

    And the article’s spot on.

  • carolekins

    Absolutely right, Mark.  With a high proportion of the population on benefits in Co Durham, we are set to lose, I believe, £150m.  The agenda is to clobber long-standing Labour councils and the electorate who support them.  It feels very much like the 80s again here.

    • aracataca

      Quite right. It is however more connected with areas that don’t vote Tory. Punishment is being inflicted on Inner London although in this instance Labour voting areas are to be subjected to a mass social cleansing  experiment via the Housing Benefit ceiling. It’s also worth remembering that Wales will be adversely affected by the same regional pay policy. Such is the measure of the Tory party-vote for us or you get a kicking.

  • Simondent01827

    Tyis is yet more evidence of the tories attitude to the north of the uk. Regional pay will further divide the uk and increase the divide between north and south. We must not allow them to do this this is devisive and will result in large areas of the north and midlands left struggling to get teachers, doctors and other public servants to work in these areas which require these people and there expertise.

  • Colin Burgess

    Right on, Mark!

  • James

    Postcode wages and salaries ain’t good but doesn’t Liam Byrne want postcode benefits? Where benefit levels are adjusted downward in the poorest areas to ensure a big differential is maintained between the poorly waged and dirt poor unwaged? How can Labour promote the unenlightened cruelty or postcode benefits and while at the same time opposing postcode pay scales?

  • Francislerouge

    This requires exceptional measures: can we get the Shadow Cabinet, publicly to seek a postponement of regional wage variations until after the next election? If, as will almost certainly be the case, the LibCon  government refuse, do we need a categorical election pledge forthwith to repeal the measure if Labour wins in 2015?  

  • Quiet_Sceptic

    We already have some of the features described in the article – check out the teachers salary scales in the link below, you have 3 different pay grades within the South East alone, so you can already have two teachers living on the same street earning different wages.

    The teacher commuting into inner London gets paid £36.4k (max), the teacher commuting to the London fringes gets paid £32.6k (max).

    http://www.education.gov.uk/get-into-teaching/salary/teaching-salary-scales.aspx

  • Jonny

    You use a bad example in mentioning Plymouth, which has some of the poorest wages of any city in Britain and is, like most of the South West, assumed to be rich because people come here on holiday. The Centre for Cities puts average weekly earnings in York at £465 per week, Plymouth at £408. Our NHS trusts in Devon and Cornwall are already trying to form a cartel to set regional pay for health workers in a pioneering attempt to be ahead of the pack in the race to the bottom.

  • Redshift

    Yes, yes, yes! More of this please Mark.

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