Government plans for a 2.8% NHS pay rise 2024 in 2025–2026. The government claims it can only afford a 2.8% wage increase for nurses and other NHS employees in England in 2025–2026.
The evidence presented to the NHS Pay Review Body was released by the Department of Health and Social Care (DHSC).
It informed the body that it had “set aside 2.8%” for compensation awards for physicians, dentists, and Agenda for Change employees.
“Based on macroeconomic data and forecasts, as well as the fiscal and labour market context,” the DHSC stated in its evidence, “this is a reasonable amount to have set aside.”
In its own testimony before the NHS Pay Review Body, NHS England reaffirmed this stance.
“Our view on affordability takes into account the likely NHS budget from our discussions with DHSC thus far, as well as what was outlined by HM Treasury in the autumn budget 2024,” it informed the board.
In light of this, we suggest allocating funds for NHS planning based on a 2.8% salary settlement.
“Any increase of 0.5% above that costs about £700m, which is equivalent to about 2% of elective activity (more than 300k patient pathways completed).”
The plan, which comes after Agenda for Change employees received a 5.5% wage rise in 2024–2025, was deemed “deeply offensive” by the Royal College of Nursing (RCN).
“The government has told nursing staff they are worth as little as £2 extra a day, less than the price of a coffee,” stated Professor Nicola Ranger, general secretary and chief executive of the RCN.
“Nursing is in crisis; too many seasoned professionals are leaving, and fewer are joining.”
“This is extremely disrespectful to nursing staff, harmful to their patients, and at odds with the NHS’s efforts to be rebuilt.”
One of the few unions that has declined to provide evidence for 2025–2026 and boycotted the NHS Pay Review Body process is the RCN.
Instead, the RCN wants to work directly with the government to negotiate a 2025–2026 pay package alongside Unison and Unite.
The idea of restricting salary increases to 2.8%, according to Unison, would “go down badly” with NHS employees who were already dealing with an especially difficult winter.
“The government has inherited a financial mess from its predecessors, but this is not what NHS workers wanted to hear,” stated Helga Pile, the union’s head of health.
Employees are essential to improving the NHS’s situation. Although the government has made a commitment to improve performance, the suggested wage increase is hardly more than the cost of living.
“It is not a good idea to let the discredited pay review body determine how much money is required to update Agenda for Change pay scales.”
Unite, meanwhile, called the wage recommendation an “insult.”
“The NHS recruitment and retention crisis will not be resolved unless the issue of restorative pay is taken seriously,” stated General Secretary Sharon Graham.