Assembly calls for cap on GLA senior pay

16 June 2010

The Mayor should limit the salary of his senior managers to no more than 20 times that of the lowest paid employee, the London Assembly said today.

In a motion agreed at today’s meeting, the Assembly urged the Mayor to sign up to the Government’s recent pledge to limit senior public sector pay settlements. The cap would apply to the Greater London Authority, The Metropolitan Police Authority, The London Fire and Emergency Planning Authority, Transport for London and the London Development Agency and would include a long term goal of no one in the GLA Group being paid more than ten times the lowest salary.

There are currently more than 90 posts in the GLA group earning more than ten times the London Living Wage, the Mayor’s minimum wage for the capital.

Darren Johnson AM, who proposed today’s motion, said:

“Research shows that pay inequality has a detrimental effect on the whole of society, the rich, the middle classes and the poor. Countries with a smaller gap between the well and low paid have less crime, fewer health problems and greater social cohesion. We welcome David Cameron’s pledge to limit the pay gap in the public sector and urge Mayor Boris Johnson to follow his leader and implement a similar policy across the GLA Group.”

John Biggs AM, who seconded the motion, said:

“City Hall should examine and address the pay disparity that exists within its ranks and set an example to the whole of London. With the London Living Wage set at a little over £15,000 a year can their be any justification for paying GLA public servants more than twenty times that rate, over £300,000 a year? ”

The full text of the motion reads as follows:

 “This Assembly notes the Prime Minister’s pledge to limit the highest public sector pay settlement to no more than twenty times that of the lowest worker, and the Equality Trust’s proposal to aim for pay inequality to be reduced to no more than ten times. The Assembly also notes that within the GLA Group there are approximately 90 staff paid more than ten times the London Living Wage.

This Assembly calls on the GLA Chief Executive, the Mayor, the Police Authority, the Fire and Emergency Planning Authority, the Board of Transport for London and the Board of the London Development Agency to commit themselves to reducing the difference in pay between the lowest and highest paid staff to no more than 20 times, with a long term goal of no more than 10 times.”

ENDS

Notes for Editors:

1.      The motion was agreed by 13 votes in favour.

2.      View the webcast here.

3.      As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.