Current Students and Staff

// University News

12 Jul 2016

London Weighting not high enough to meet extra cost of living in the capital

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The average London worker is at least £2,000 worse off in pay supplements causing a drop in basic living standards, a new report reveals. 

The report produced by Loughborough University’s Centre for Research in Social Policy (CRSP) for independent charity Trust for London shows that London Weighting has not kept pace with rising costs of living in the capital over the last 15 years. 

The report – London Weighting and London costs - a fresh approach? – by Director of CRSP and Professor of Social Policy Donald Hirsch reveals that it costs at least 20% more to achieve a decent standard of living in London, compared to the rest of the UK, and in some cases it can be as high as 50%. This is mainly due to the high costs of housing, transport and childcare. It found that London Weighting needs to be almost £7,700 per year in Inner London and just over £6,200 in Outer London to cover the additional minimum cost of living here. 

Currently, London Weighting averages under £4,000 and varies significantly across employees and different industries, with more paid in Inner London than Outer London; and more in finance, manufacturing and public sectors than retail or the not-for-profit sectors. 

London Weighting has risen relatively little over the past 15 years, despite a rapid rise in costs, particularly housing. This could be partly due to the fact that there is no longer a body which is responsible for the calculation or promotion of it. 

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