The UK government has proposed a 2.8% pay rise for public sector workers, including NHS staff, teachers, and senior civil servants, for the 2025/26 financial year.
While this proposal aims to address pay stagnation and recruitment challenges, unions have expressed dissatisfaction, arguing that the increase is insufficient given the rising cost of living and the ongoing pressures faced by public sector employees.
In this article, we explore the implications of the proposed NHS pay rise, the reactions from unions, and the potential impact on the healthcare sector.
What is the Proposed NHS Pay Rise for 2025/26?
The Department of Health and Social Care (DHSC) has proposed a 2.8% pay increase for NHS staff, including nurses, doctors, and general practice workers, for 2025/26.
This recommendation considers macroeconomic forecasts and fiscal constraints, with departments expected to self-fund the increase from existing budgets.
Key highlights of the proposal:
- Inflation comparison: The Consumer Prices Index (CPI) is predicted to average 2.6%, while the Retail Prices Index (RPI), which includes housing costs, is forecast at 3.5%.
- Fiscal approach: The government asserts that the increase is balanced against economic conditions but falls short of union demands.
- Union response: The rise has been criticized for not addressing pay erosion or supporting recruitment and retention efforts.
Despite the modest increase above CPI, unions argue that the rise does little to tackle real-term wage reductions experienced by NHS staff over the years.
Why Are Unions Criticizing the Proposal?
Unions like the British Medical Association (BMA) and Royal College of Nursing (RCN) have voiced strong opposition to the 2.8% pay proposal.
Key criticisms include:
- Erosion of pay: Years of below-inflation increases have led to real-term earnings reductions for NHS staff.
- Morale impact: Unions claim the proposal fails to alleviate the financial struggles faced by workers, risking industrial action.
- Budgetary strain: Departments are expected to cover pay rises without additional funding, potentially diverting resources from critical areas.
Prof. Nicola Ranger of the RCN called the increase “deeply offensive,” equating it to just £2 extra per day for nurses. Unions argue that the proposal fails to address structural issues, including recruitment challenges and staff dissatisfaction, urging for immediate reforms.
What Does This Mean for NHS Staff Across Pay Bands?
The proposed 2.8% increase will impact NHS staff at all pay bands, from entry-level healthcare assistants to senior leadership roles.
Proposed 2025/26 salaries:
- Band 2: Starting at £23,614 for roles like healthcare assistants and administrative staff.
- Band 5: Ranging from £29,969 to £36,483 for nurses and paramedics.
- Band 9: Reaching up to £121,271 for directors of clinical services.
Pay progression, revised in 2018, ties salary increases to years of experience rather than spine points to ensure fairness.
However, unions argue that the structure does not adequately compensate for inflation or the high cost of living, further straining the workforce amid rising expenses.
How Does the Pay Rise Compare to Inflation and Living Costs?
The proposed 2.8% pay rise marginally exceeds the CPI inflation forecast of 2.6% but lags behind the RPI forecast of 3.5%, which better reflects living costs.
Key considerations:
- Rising expenses: RPI accounts for housing and energy costs, which have surged in recent years.
- Wage stagnation: NHS staff have faced years of below-inflation increases, exacerbating financial pressures.
- Recruitment challenges: Below-market wages have made it harder to attract and retain skilled professionals, adding to workforce shortages.
Unions highlight that the proposal fails to address the financial realities faced by NHS workers, calling for a more substantial increase to mitigate the cost-of-living crisis and improve staff retention.
What Are the Potential Consequences of the Pay Proposal?
The 2.8% pay rise recommendation carries significant implications for NHS staff and operations:
- Recruitment and retention: A modest increase could worsen workforce shortages, hindering patient care.
- Industrial action: Dissatisfaction with pay could prompt strikes, disrupting NHS services.
- Budget constraints: Departments must fund the increase from current allocations, potentially leading to cuts in other areas.
The British Medical Association warns that unresolved pay disputes could lead to more strikes, impacting the NHS’s ability to rebuild relationships and improve efficiency.
The proposal has been criticised for failing to provide the necessary support for workforce sustainability.
What Are Unions Proposing as Alternatives?
Unions are advocating for significant reforms to NHS pay structures and direct government negotiations.
Key proposals:
- Modernized pay framework: Revise the outdated Agenda for Change structure to reflect current roles and responsibilities.
- Above-inflation increases: Ensure pay adjustments exceed CPI and RPI, addressing real-term wage cuts.
- Additional funding: Allocate new resources to cover pay increases without straining departmental budgets.
UNISON emphasised the urgency of reform, warning that delays in addressing pay disparities and structural issues could escalate to further strikes.
Immediate discussions are seen as essential to resolving ongoing disputes and securing workforce stability.
How Will the Proposal Affect Teachers and Other Public Sector Workers?
Beyond NHS staff, the proposed 2.8% pay rise extends to teachers and senior civil servants, drawing similar criticisms.
Key issues for teachers:
- Real-term pay cuts: The National Education Union (NEU) highlighted a 20% decrease in teacher salaries since 2010, impacting recruitment and retention.
- Budget pressures: Schools are expected to fund pay increases through efficiency savings, risking resource allocation and workloads.
- Recruitment crisis: Teacher shortages, exacerbated by low pay and high workloads, affect student outcomes and overall education quality.
Union leaders warn that the proposal fails to address systemic challenges in education and other public sectors, urging for more comprehensive reforms and additional funding.
What Are the Next Steps in the Pay Review Process?
The pay review process involves several stages before the final implementation of pay increases:
- Evidence submission: Government departments and unions present written evidence to independent pay review bodies.
- Analysis and recommendations: The review bodies evaluate submissions and propose pay adjustments.
- Government decision: Ministers decide whether to accept the recommendations.
Unions have criticised the process as lacking transparency and independence, advocating for direct negotiations with the government to ensure fair outcomes.
The timeline remains uncertain, with union leaders emphasising the need for swift action to address workforce concerns and prevent further unrest.
Conclusion
The proposed 2.8% NHS pay rise for 2025/26 has sparked significant debate, highlighting ongoing challenges in balancing fiscal constraints with the need to address pay erosion and workforce morale.
While the government defends the proposal as reasonable, unions argue it fails to meet the needs of NHS staff and risks exacerbating existing issues.
As the pay review process unfolds, the outcome will be closely watched by all stakeholders, with implications for the future of the UK’s public sector workforce.
FAQs About NHS Pay Rise
When will the NHS pay rise be paid?
The NHS pay rise for 2025/26 is expected to be implemented after recommendations from the independent pay review bodies are finalised and approved by the government. Typically, this process concludes in the first quarter of the financial year.
Has the NHS pay rise been agreed?
The 2.8% proposed NHS pay rise has not yet been agreed upon and awaits review by the independent pay review bodies. The final decision will depend on their recommendations and government approval.
Will the NHS get a pay rise in April 2025?
The proposed 2.8% pay rise for NHS staff is intended for the 2025/26 financial year, but its implementation date will depend on the review process. If agreed, it could take effect from April 2025.
Will all NHS staff get a one-off payment?
There has been no announcement of a one-off payment for all NHS staff in relation to the 2025/26 pay proposal. Any such decision would require specific government approval.
Why do NHS staff not get full state pension in England?
NHS staff are part of the NHS Pension Scheme, which integrates with the state pension and may reduce entitlement under certain circumstances. This is due to a historical system of “contracting out” of the additional state pension, which ended in 2016.
