Posted 06 March 2024 - 13:00
Posted 06 March 2024 - 13:00
News
Restraint urged on nurses' pay after 'generous' award last year
NHS Pay Review Body is told budgets on spending are ‘extremely constrained’ for 2024-25 pay offer after last year’s 'generous' awards pushed up costs
NHS Pay Review Body is told budgets on spending are ‘extremely constrained’ for 2024-25 pay offer after last year’s 'generous' awards pushed up costs
The government has asked for a restrained 2024-25 pay offer recommendation for nurses as it blames last year’s pay awards, inflation and industrial action for pushing up NHS costs.
The Department of Health and Social Care (DHSC) said in evidence submitted to the NHS Pay Review Body (RB) that budgets on spending are ‘extremely constrained’.
It said the historically generous award for 2024-25 of 5% had impacted NHS budgets, and that 40 days of industrial action in the last financial year had cost £1 billion. Meanwhile, experts warned tax cuts in the budget being announced by chancellor Jeremy Hunt on Wednesday could cost £10 billion a year.
Unlike previous years, the DHSC did not suggest a percentage figure for the pay offer but instead said a pay rise should be ‘fair but affordable.’
DHSC says focus is ensuring a fair pay award while minimising inflationary pressures and managing UK debt
The DHSC submission said: ‘These are challenging times for everyone, and our focus is ensuring a fair pay award which recognises the vital importance of public sector workers while minimising inflationary pressures and managing the country’s debt.
‘It is therefore essential that in this fiscal and economic climate, pay remains fair but affordable.’
According to the department’s evidence every 1% pay increase for the health and care workforce would cost £1.1 billion to fund.
Meanwhile, experts at the Institute for Fiscal Studies warned that the chancellor’s expected tax cuts could cost the UK £10 billion a year, and could leave the already strained health service with £2 billion less in day-to-day spending in England – the largest reduction since the 1970s.
Nurses on Agenda for Change (AfC) contracts should have received their pay offer in time for the new financial year on 6 April, but the RB process has been delayed for months as the government did not initiate it until December.
Nurses won't accept suggestions by ministers that NHS budgets are too stretched to deliver on pay, says RCN
A spokesperson for the RCN said claims that a fair pay deal for nurses was unaffordable would not wash with nurses. ‘We must be clear that nursing staff across England will not accept suggestions by ministers that NHS budgets are too stretched to deliver on pay.
‘Governments have many options at their disposal to increase health service budgets and provide an above-inflation pay rise for nursing staff. By choosing not to deploy these options they continue to undervalue this vital profession.’
Unison acting head of health Helga Pile said the pay settlement delay ‘simply isn’t good enough’ and the public wanted to see investment in the NHS rather than tax cuts. She added: ‘The public would much rather an efficient NHS, which can see and treat them quickly when they need its help, than have a few extra pennies in their pockets.’
On Tuesday the DHSC and doctors unions announced they have agreed a new offer for 2023-24 after extensive talks with the British Medical Association (BMA) and others.
The new offer, if accepted by members, would see top hospital doctors get a rise of between 6% and 19.6%, depending on the number of years’ experience as a consultant.
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