Can someone speak specifically about the UK software market? We seem to wrongly be making statements about the US market, which this article is not about. From what I've heard it's dismally underpaid in the UK; I have also heard the perspective that costs of living are dramatically lower outside London, and matched with longer vacations and shorter working hours, it evens out.
Shorter working hours doesn't really apply. Yes, we may be paid for 40 hours, but we still have tons to do. At the companies I've worked at not a single dev works less than 10 hours per day, not to mention the out of hours work that needs to be done.
Longer vacations - well on paper, but you don't always get to take them. Working on holiday isn't time off it's still work.
This is different at larger institutions, but larger institutions don't have a problem paying competitive salaries.