Key workers in capital 'worse off'

Nurses, teachers and postal workers in the capital are significantly worse off than colleagues in the North despite receiving special pay allowances.

New figures show that while it costs nearly 18 per cent more to live in London than the North-East - the cheapest region - the difference in wages is much less.

The Office of National Statistics data highlights the difficulties in recruiting teachers and nurses in London. It will boost the case of Treasury insiders who want greater flexibility in setting public-sector wages.

The survey shows postal workers in London earn only 12 per cent more than their peers in the North, teachers get 12.6 per cent more and nurses 14.7 per cent more.

In terms of spending power, however, nurses in the capital are £13 a week worse off thanks to higher living costs, while postal workers and teachers are out of pocket by £19 and £28 respectively.