Towards improved policies on public-sector pay: revising the way government funding is allocated to hospitals, schools and public sector pay structures

Description of impact

Researchers at the University of Aberdeen's Health Economics Research Unit (HERU) have developed a theoretical model of the causes of local variations in the competitiveness of pay in the public sector and shown the impact of these variations on health and teaching services. Recommendations arising from the research have changed the way funding is distributed to: Primary Care Trusts in England and Wales; the adjustment for excess costs in the resource allocation formula for health services in Scotland; and the structure of regional pay for doctors in the UK. The evidence also underpinned proposals by the Chancellor of the Exchequer in 2012 to introduce local pay for health service and teaching professionals in England.

The claimed impact, as defined by REF guidance, is therefore on policy debate and decisions, legislation and service delivery influenced by research.

Impact status	Impact Completed (Open)