A NEW survey reveals that pay in southern England is among the best in the UK.

Only those employees who are working in London can expect to earn more.

Recruitment and human resources company Kelly Services, which carried out the research, says this reflects low unemployment levels and also the high cost of living in the region.

While pay increased generally across the UK in 2004, the figures reveal that there is a growing gap between bottom and top end pay rates.

Jo Stuteley, Kelly Services' southern regional director, said: "This research provides managers and recruiters in the south with a number of key indicators regarding the local job market and enables them to take an informed view of their staffing strategies.

"Employees and job seekers will be interested in the results as it gives them an idea of what others, working in similar roles, are being paid for the work they carry out.

"It means that they can adjust their expectations accordingly.

"They can see if the grass is really greener on the other side in terms of pay.

"Southern employers, who wish to attract the best recruits, need to ensure that their financial rewards are competitive.

They also need to look beyond pay to develop strategies that address the impact of upcoming employment legislation and the UK's changing demographic profile."