15.11.17
Hunt: Government knows trusts can’t fund pay cap commitment alone
In response to health questions at the Commons over the expected scrapping of the NHS pay cap at the upcoming Budget, health secretary Jeremy Hunt said he knew trusts would need more funding to ensure the commitment could be honoured.
Asked by Labour’s Liz McInnes about what safeguards would be put in place to ensure trusts do not have to pay for the lifting of the cap by “making staff cuts, downgrading roles or reducing terms and conditions under the guise of reforms,” Hunt said: “NHS trusts are under pressure to make very ambitious efficiency savings anyway.
“We have listened carefully to their case that they would not be able to make further efficiency savings to finance an increase in pay beyond the 1% cap.”
Last month, the secretary of state confirmed that the cap would be brought to an end at next week’s Autumn Budget, but organisations are concerned that there has been no announcement of additional funding to support the increased wages.
Chris Hopson, chief executive of NHS Providers, said his organisation welcomed Hunt’s comments but repeated calls for the government to produce a fully-funded plan to end the pay cap.
“In our recent workforce report, we urged the chancellor to ensure that the cost of any pay increases recommended by the pay review bodies for NHS staff are funded through additional money and not by squeezing existing budgets further,” he added.
“We look forward to seeing this commitment honoured in the Autumn Budget as part of a wider plan to end the pay cap during this parliament.”
The news comes as the Royal College of Nursing’s (RCN’s) revealed that over two-thirds of nurses feel financially worse off than they did five years ago, while more than a third are looking for a new job.
These findings, from its biennial employment survey, show the pressure being placed on nurses by increasing financial pressures and low pay.
With EU nurses already leaving the service in high numbers and the amount of staff on the register decreasing for the first time since 2013,
The RCN survey also revealed that 24% of nurses have been forced to consider other employment because of financial concerns.
In addition, 61% of those questioned said their job band or grade was inappropriate for the work they did, a significant increase on the last survey in 2015, when only 39% said this was the case.
RCN’s chief executive, Janet Davies, commented: “The shocking findings we’re highlighting today demonstrate just how severe the financial pressure on nursing staff has now become. It is ludicrous that the health service is losing valuable highly-trained staff simply because they can’t pay the bills at the end of the month.
“The Safe Staffing report we published in September laid bare the terrible impact nursing shortages are having on patients. Today’s survey findings, in contrast, show how badly nurses themselves are suffering from the continued underfunding of the health service.
“The chancellor must therefore give a clear signal in the Autumn Budget next week that the government will award an above-inflation pay rise to hard-pressed nursing staff in the NHS.”
Phillippa Hentsch, head of analysis at NHS Providers, described staffing as the “most pressing issue” facing trust leaders and used the opportunity to ask the government to clarify cash concerns.
“We need to do all we can to support trusts to make themselves great places to work – pay and job satisfaction are key components of this,” she added. “In our latest workforce report, we urged the government to set out a fully funded plan to end the pay cap during this Parliament.
“We welcome the reassurance from the health secretary that the cost of any pay increases recommended by pay review bodies will be funded with additional money so that trusts do not face a further squeeze on existing budgets. We hope to see this commitment honoured in the upcoming Budget.”
Top image: Peter Byrne PA Wire
Have you got a story to tell? Would you like to become an NHE columnist? If so, click here.