Gamma corrected payscales
Instead of wasting time with prime ministers, chancellors and 'independent' pay review bodies (all of whom seem only to understand percentages and not very well at that), we should give the task of resolving the various pay disputes to a Broadcast Engineer. Here's how it would then work:
Decide on the salary level at which nobody can really justify a further increase right now. For argument, let's say £100k. Call that 'peak level' and normalise to it. Now apply gamma correction to the entire workforce earning less than £100k. By this approach, the hierarchy is preserved (i.e. nobody overtakes anyone else) but those most in need receive proportionately more generous increases. This is far cheaper and fairer than applying a flat rate percentage. It is also simpler. Having fixed the peak figure (e.g. £100k) it only remains to decide on gamma. For example, for gamma = 0.7, someone currently on £10k would receive an increase of £9,950, someone on £50k an increase of £11,560, and someone on £90k an increase of £2,890. In other words, the percentage increase is much greater for the lower paid.
To anyone who says this is social engineering - it is, but in the right direction. Flat rate percentage increases have magnified inequality year on year. Yep, ditch the accountants and give the job to Broadcast Engineers!