Changes in spatial wage differences in the UK

Changes in spatial wage differences in the UK and the implications for healthcare funding in the period since the global financial crisis

The project aimed to investigate changes in the patterns of regional wage differences in the UK in the period since the global financial crisis. Regional differences in wages are an important element of the formula which underpin the distribution of monies to Central Commissioning Groups (CCGs) in the NHS in England and to fund local authority activities.

Annual Survey of Hours and Earnings (ASHE) and Labour Force Survey (LFS) data were used to detail changes in spatial wage differences since 2008. The project explored the drivers of  these differences and the consequences of the observed changes for the distribution of funding to CCGs.

Outcome and Translation

Regional differences in wages are an important element of the formulae which underpin the distribution of monies to CCGs in the NHS in England and the funding of local authority activities. Understanding changes in the underlying patterns of spatial wage differences and how this impacts on funding streams are of interest to both the Government who allocate the funds and to those who receive the funding.

HERU researchers involved in this research project: Bob ElliottDiane Skåtun and Daniel Kopasker