A wider pay gap THE INSTITUTE for Fiscal Studies has been looking at the difference in wages between public and private sector workers. The pay premium enjoyed by public sector workers has narrowed as a result of the Government’s austerity squeeze, but their wages are still ahead of those in the private sector, according to two new reports by a think-tank.

They earn on average 4 per cent more, down from 5 per cent in 2012, with the gap expected to narrow to 2 per cent by the start of next year – the same as pre-recession levels in 2007 – the Institute for Fiscal Studies (IFS) found. It said that since 2010, public sector pay had been held back so that the difference opened up during the crisis had been closed.

But the gap is larger when taking into account generous pension arrangements in the public sector, despite reforms by both Labour and the coalition. Take-home pay in these jobs was 8 per cent higher for women than in the private sector though for men there was no significant difference, the IFS said. Those with low wages and low levels of qualifications were better off in the public sector, with the difference widening in 2011 and 2012 as they were partially protected from squeezes on pay, the IFS found. The gap in Caerphilly council is a lot more thanks to the generous living wage settlement given to the council workers.

Andrew Nutt, Heolddu Road, Bargoed