North-south IT salary divide narrows

London deserters fuel higher salaries according to new figures

IT staff leaving London are helping to close the salary gap between the capital and rest of the country, according to a leading recruiter.

The pay gap shrank by three percent in 2006, suggests new data from E-Skills, a government-licensed not-for-profit advisory group on IT and telecoms skills development. The average IT salary outside London is now £35,000 compared to £43,000 in the capital.

Jon Butterfield, managing director of ReThink Recruitment, believes that London deserters and the increasing mobility of IT roles are driving the change.

“The price of living in London will continue to drive people out,” he said. “The anecdotal evidence is that many IT staff are moving out of town and now IT can be run from anywhere.”

Also, there remains strong demand for UK IT skills in the regions as companies get to grips with Windows Vista and reverse previous strategic staffing decisions.

“Public-sector organisations are trying to back-fill roles that were given to consulting contractors at £1,000 a day and a lot of work given to offshorers is coming back,” Butterfield said.

Manchester in particular is benefiting from the movement, he suggested, with companies such as the BBC and Royal Bank of Scotland expanding in the north-west. The south-west is also benefiting from technology research in the area.

“You can live in Manchester and be 20 minutes from the countryside, whereas if you move just outside of London you’re still paying stupid prices,” Butterfield said.