Although many London-based staff receive a weighting allowance, most public sector staff are subject to the same rates of pay whether they work in the north or the south.
But the University and College Union, which represents lecturers and other staff, said raising tuition fees and scrapping the Education Maintenance Allowance would counteract any attempt to improve social mobility.
But, whereas at the moment a member of staff who swaps to a day shift to undergo some training loses that allowance, under the new system they will not.