England’s NHS is to award its 1.3 million staff an above-inflation 5.5% pay rise in 2024-25 to help avert a retention and recruitment crisis and ease the cost-of-living burden. Ministers have accepted the recommendation of the independent NHS Pay Review Body.
NHS Pay Increase
A massive pay increase across the NHS in England has been announced for the 2024/25 financial year. It comes in response to concerns raised by every trust about the deteriorating situation with staff retention, recruitment challenges and the cost of living crisis.
The government declared that the recommendations proffered by the independent NHS Pay Review Body, a 5.5% pay rise for about 1.3 million NHS workers had been approved. The Chancellor, Rachel Reeves, confirmed 5.5% pay rises for NHS workers had been approved on July 29, 2024, to be backdated from April 1, 2024.
As such, this pay rise is part of a more comprehensive £9.4 billion pay package intended to enhance the compensations of public sector workers such as teachers and social workers who have been under a lot of pressure on the rise in inflation and increased cost of living.
- UK Child Tax Credit 2024
- UK Tax Rebate 2024
- WASPI Payment Date
- UK Tax Brackets 2024
- DWP Eye Condition Payment 2024
- DWP Child Benefit Payments 2024
- DWP Budgeting Loan 2024
- DWP PIP Vouchers
- DWP PIP Rates 2024
Who Will Be Qualified for the NHS Pay Rise?
The recent announcement of a 5.5% pay increase in 2024- 25 for NHS staff really does just apply to those covered by the Agenda for Change pay system. This is a national pay agreement that covers most employees in the NHS across the country and applies to employees in the categories listed below, among others:
- All registered nurses and midwives
- All midwives
- Large number of professions: physiotherapists, occupational therapists, speech and language therapists, dieticians and radiographers.
- Healthcare Assistants: All grades of healthcare assistants.
- Ambulance Staff: Paramedics, emergency care assistants and all other staff that work in an Ambulance
- AfC Staff: NHS Staff that are employed on the AfC pay and contract system
- Other Staff: Includes all other NHS staff that are not in the doctors, nurses, and AHPs groups, for example, porters, cleaners and catering staff
- Services and Agencies Staff: Administrative and clerical staff in the NHS in England
- Job Roles: The vast majority of NHS staff working in direct patient care and support are covered.
- Contract Type: All permanent and temporary staff; however, there is usually an application of specific conditions.
- Exclusions: Although very few, in some instances, certain job roles or types of contractual arrangements could mean a person is not eligible. You should check with your employer for details of how it will apply in your case.
- Pay Bands : Pay increment applies across the entire pay band under AfC
- Back Pay: This has been backdated to April 2024, so staff who are doing work for the entitled would get arrears
5.5% NHS Pay Increase New Changes
5.5% pay growth for staff with the NHS brings with it a lot of changes firstly amidst the consolidated increase in pay means that this will now form the base for any future pay increase so for example when a pay increase is raised in future this will now be based upon a new and increased salary.
Backdated to April 2024:
- This pay rise is backdated to 1 April 2024. NHS staff will get back pay for the period from April until the increase comes into their pay packets.
New Pay Points:
- The introduction by the government of a system of new pay points in some pay bands, significantly in some of the more senior grades for staff at Band 8a or above, would imply better flexibility regarding the salary progression of more experienced staff.
Agenda for Change Staff Focus
- The development of pay is very much slanted towards staff in the AfC pay system as it is this pay system that covers over 95% of NHS staff, which consists of nurses, midwives, allied health professionals, healthcare assistants, and administrative staff.
Government Acceptance of Pay Review Body’s Recommendations
- The 5.5 percent figure was recommended by the independent NHS Pay Review Body, and the full recommendations of the body have been accepted by the government.
Possible Further Negotiation
- The 5.5 percent pay rise has been somewhat greeted, but some unions and staff groups have unveiled their dissatisfaction that may lead to another negotiation or industrial action.
Impact on NHS Finances:
- The increased wage bill will bite into NHS finances. The government would be under an obligation to find that extra money from somewhere to pay for the increase, a process that may influence health spending in other areas.
Possible Impact on Inflation:
- The massive pay rise for such a huge share of the workforce runs the risk of feeding into wider inflationary pressures in the economy.
Implications of the NHS Pay Increase
Wage Increase: A 5.5% wage increase for the NHS workforce would be just one single major step in the right direction with positive effects including:
- Positive Effects: Employee Morale: A big wage increase can do much to boost employees’ morale. In turn, this can increase the satisfaction of the job as well as foster a healthy work environment. Staff Turnover: A high salary will keep experienced staff, reducing the need for expensive recruitment drives and training courses. New Talent: A competitive wage package will attract skilled health workers to the NHS in addressing the staffing shortfall.
- Economic Boost: Increased incomes for a significant share of the population have the impact of increased consumption, thus driving the economy.
Potential Problems:
- Budget Burden: A more expensive wage bill will subsequently place more significant pressures on NHS budgets and this can be actioned for by trimming other service-related budgets.
- Inflationary Pressures: Indeed, such a huge pay increase for such a big workforce may also add to more general inflationary pressures in the economy.
- Inequity in the determination of which workers will receive raises can have effects of creating impressions of unfairness among staff.
- Long-term Sustainability: A long-term view needs to be taken regarding the affordability of the pay increase, which will be critical in ensuring the long-term sustainability of the NHS.
- Patient Care: Patients could receive better care as a result of better morale and retention of nurses.