NHS nurse pay: claim that 1% deal would be inflation-busting is dismissed by economist
Economist calls health and social care secretarys comments to MPs not sensible, while RCN says Matt Hancock is defending the indefensible
Health and social care secretary Matt Hancock insists a 1% NHS pay deal would represent a real-terms pay rise despite predictions it would be outstripped by inflation.
An economist described the ministers comments to MPs as not sensible and the RCN accused Mr Hancock of defending the indefensible.
Matt Hancocks comments on NHS pay to committee of MPs
The secretary of state gave evidence to the Commons health and social care committee on 16 March about the governments heavily criticised suggestion
Economist calls health and social care secretary’s comments to MPs ‘not sensible’, while RCN says Matt Hancock is ‘defending the indefensible’
Health and social care secretary Matt Hancock insists a 1% NHS pay deal would represent a ‘real-terms’ pay rise – despite predictions it would be outstripped by inflation.
An economist described the minister’s comments to MPs as ‘not sensible’ and the RCN accused Mr Hancock of defending the indefensible.
Matt Hancock’s comments on NHS pay to committee of MPs
The secretary of state gave evidence to the Commons health and social care committee on 16 March about the government’s heavily criticised suggestion NHS Agenda for Change staff should receive a pay rise of just 1% in the 2021/22 pay round.
He told the MPs: ‘Inflation is below 1% and therefore a proposed 1% pay rise is indeed a pay rise and that is simply a matter of fact.’
Health secretary’s reasoning ‘not sensible’, says economist
Economist Gavan Conlon, a partner at economics consultancy London Economics, said: ‘When assessing whether the proposed pay increase represents a real-terms increase or cut, it is not sensible to compare a cash increase in 2021 with a measure of inflation in 2020. The proposed 1% pay increase in cash terms represents a real-terms reduction of 0.5%.’
An RCN spokesperson said: ‘The government is digging in, despite public anger and clear support for NHS staff.’
- RELATED: RCN sets up strike fund after ‘pitiful’ 1% pay-rise recommendation
- RELATED: Pay rise for NHS nurses: what a new deal might look like
Formal pay proposal expected in May
The government insists 1% for the NHS is all it can afford. But nurses will have to wait until the summer to find out what pay rise will finally be offered.
The independent NHS Pay Review Body is not expected to make formal recommendations to ministers until May.
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