The real cost of London Underground's pay offer

In 2015 TfL imposed 'Pay for Performance' for all of its staff in pay bands 1-3, which are the same grades as almost all LU staff. A key feature of PfP was that pay ranges no longer automatically increased in line with the annual pay rise. London Underground is now proposing to do exactly the same in LU.

Here are just a few examples of the impact this has had on TfL salaries:

Between 2015 and 2024 the cost of living rose by almost half, at a total of 48%. And off course, this doesn't take into account the huge increases in rents and house prices in London and the South East, which makes it almost impossible for most staff to afford to buy in London.

Pay Band 1: the lowest paid staff

By contrast to the 48% increase in cost of living, the minimum salary for the lowest paid staff (pay band 1) increased by only 14% and until 2022 there had been NO increase at all. It has only been the need to bring TfL salaries in line with the London Living Wage that compelled TfL to make any increase.

The top of the pay band has increased by only 10% meaning that the overwhelming majority of staff in pay band 1 have received little or no increase in their salaries for almost 10 years and receive only a lump sum each year.

Pay Bands 2 and 3: the cost of PfP

The picture for pay bands 2 and 3 is no better. The pay band 2 minimum has increased by only 17%, meaning that it is £4,082 less than if it had increased in line with annual pay rises, and the maximum is £9,430 less.

For pay band 3 the impact is even greater; the minimum is £6808 less than if it had increased in line with annual pay rises and the maximum is £14,766 less.

Of course, if pay bands had increased in line with inflation then the difference is even greater. Meanwhile, TfL Directors receive five or even six figure bonuses on top of their six figure salaries. If we do not stop London Underground imposing these changes then in 10 years' time the value of our salaries will be far, far lower than it is today.