Pay deal aims to recruit and retain NHS staff

The deal, which is expected to cost £4.2bn, will be funded in full by the Treasury and not from existing NHS finances.

The agreement covers more than a million staff in England and targets the lowest paid. All staff will receive pay rises from 1 April this year. A new minimum basic pay rate of £17,460 will be introduced in the NHS in England – a rise of more than £2,000 that will benefit 100,000 staff.

It is understood that funding will be available for NHS staff in Scotland, Northern Ireland and Wales, where local administrations have responsibility for health service pay.

Starting salaries across all pay bands will increase following a simplification of the bands. This will be achieved by removing pay points at the bottom of current pay bands that overlap with a lower band. One pay point will be removed in 2018/19 and further points in 2019/20.

The standard NHS employment contract will include a new provision for NHS apprentices. The framework says this will help employers make the most of the apprenticeship levy and increase capacity.

To retain staff, the new structure will aim to ensure that on 1 April of each year, all staff will have a higher basic pay than the current expectations of a 1% pay award plus contractual increments.

Staff will also be able to get to the top of their pay band more quickly – up to three years sooner in some cases. A new pay progression framework will be put in place by April 2019. This will ensure staff have the skills and knowledge to perform their role, but also include minimum time periods before progression to the next pay point.

Earlier reports that staff would have to give up a day’s leave as part of the deal proved untrue. However, some concessions will be made. Pay progression will not be automatic. And unsocial hours pay enhancements will be reduced.

This will mean payment for band one on Sundays and public holidays (midnight to midnight) will be time plus 97% in 2018/19, falling to time plus 95% in 2019/20 and time plus 94% in 2020/21.

The GMB is the only union advising its members not to accept the deal. Unions will consult members and announce the outcome by 8 June. If agreed, the pay rises will be backdated to April.

Sara Gorton, Unison’s head of health, and the lead pay negotiator for the NHS unions, said: ‘The agreement means an end at last to the government’s self-defeating and unfair 1% pay cap. It won’t solve every problem in the NHS, but would go a long way towards making dedicated health staff feel more valued, lift flagging morale, and help turn the tide on employers’ staffing problems.’

Health and social care secretary Jeremy Hunt (pictured above) said: ‘NHS staff have never worked harder and this deal is recognition of that, alongside some important modernisation of the way their contracts work.’

Danny Mortimer (pictured), chief executive of NHS Employers, added: ‘This deal will benefit more than a million health staff in England. To support long-term attraction and recruitment, starting salaries for all our non-medical staff groups will also see increases, which will help to make these roles more attractive for people considering a career in the largest employer in Europe.

‘It will also ensure that existing staff receive deserved increases to pay, which will assist our work to value and retain these vital colleagues.’

The BMA and NHS Employers also agreed a new general medical services contract for GPs in England in 2018/19. It includes a 1% rise in pay and 3% for expenses.

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