Clarkslegal LLP - Solicitors in Reading and London

Legal Updates

Mind the gap

16 March 2011 #Employment

According to figures released from the Office for National Statistics a private sector worker earns £81 less a week than his/her equivalent state worker. 

A typical state worker earns £554 before tax (annual salary of £28,808) compared to a private worker who earns £473 a week (annual salary of £24,594).  This is a difference of 15%.

The gap in pay doubled while Labour was in power - in 1997 the gap was just £40 a week.

In addition, state workers enjoy generous pensions. Many private sector workers do not even receive company pension contributions.

Pay cuts and freezes have not helped the private sector either.  They received an average pay rise of 2% last year compared with 3% in the public sector.

Will Hutton`s pay review published this week tackles pensions, performance-related salaries and multiples in the public sector but has not directly addressed the issue of the pay gap between the public and private sector.  Only time will tell if it will be. 

A copy of the statistics from ONS can be found here

A full copy of the Hutton pay review can be found here

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.
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