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It now costs a fortune to live in Manchester. Is it time for London-style salary weighting?
24.09.2023 - 06:31 / manchestereveningnews.co.uk
Food, drink, rent, mortgages, energy, transport. You name it and it probably costs significantly more than it did a few months ago.
In fact, for many people, the only thing that hasn't rocketed in recent years is their wages. And Mancunians are feeling the pinch of the cost-of-living crisis more than most.
As we reported earlier this week people living in Manchester are spending more of their monthly salary on bills than anywhere else in the UK. Around 80 per cent of their income after tax goes on things like food, rent, bills and travel costs - compared to just 66 per cent for those living in London.
Read more: More than 400,000 households to get DWP £300 cost of living payment in Greater Manchester - check how many where you live
Read more: “Why do we want to be like London?”: Mancs hit back at report's recommendations on city's future
And when you look the figures involved it's no surprise. According to the Office for National Statistics the average annual salary in Manchester in 2022 was £33,800.
But the average rent is now a staggering £1,600 a month, up from £944 just six months ago. So what does this mean for our city and is it time for a London-style salary weighting - the allowance paid to certain occupations to help offset the higher cost of living in the capital - to be introduced here in Manchester?
Dr Kevin Albertson, a professor of economics at Manchester Metropolitan University, says a weighting allowance 'is not really facing up to the problem we have'. "It's putting the problem onto employers, which is effectively discouraging employment," he said.
Instead he argues for much wider measures including more social housing and a universal basic income, an idea which is already being trialled in two parts
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