09.03.18
NHS pay deal: DHSC closes in on 6.5% wage rise in exchange for day’s holiday
Department of Health and Social Care (DHSC) officials are close to negotiating a £3.3bn deal with health unions, delivering a 6.5% wage rise for NHS staff in exchange for losing one day of holiday each year.
The three-year deal would see around 1.3 million staff under the Agenda for Change contract benefit from increased pay, according to reports seen by the Guardian.
Non-medical staff are expected to see a 3% rise, with future increases of 1-2% over the next two years, building on promises made by chancellor Philip Hammond in the Autumn Budget.
The rise would represent an end to the controversial 1% pay cap policy which has been in place across much of the public sector since 2010 and has been repeatedly cited as a reason for reduced service quality and a shrinking NHS workforce.
However, negotiators have been clear that any increase must be balanced out by the forfeiture of a day’s holiday, a move in line with Hammond’s claim that a pay rise would only be possible if staff could increase productivity.
The news has been met with doubt by some industry bodies, with NHS Providers deputy CEO Saffron Cordery urging the government to provide new funding streams to cover the rise, in order to stop further strain on an already financially stressed system.
“The government has promised that the extra costs of funding the increase will be fully funded, it is vital that this covers the full term of any agreement, which is reported to be three years,” Cordery said.
“It is also crucial that this covers all services delivered by the NHS, including those which have been commissioned by non-NHS bodies such as local government. These services include health visitors, school nursing and sexual health provision.
“NHS trusts are already under huge financial pressure. A pay rise is welcome and overdue. But the government must not leave trusts to foot the bill.”
It is unlikely that Hammond will reveal the deal in next week’s Spring Statement, but Treasury and DHSC officials are reportedly optimistic about the likelihood of this agreement being accepted.
Top image: Dominic Lipinski and PA Wire
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