Treasury agrees £3bn for NHS pay deals

Ministers are promising to “fully fund” a new NHS pay deal, with claims that around £3 billion will come from the Treasury.

The Health Secretary has promised that the offer to more than one million NHS staff - including nurses, midwives and ambulance staff - will not drain funds from frontline services.

Under the terms, workers would receive a bonus of between £1,655 and £3,800 this financial year, while most would get a five per cent rise next year - with a higher increase for the lowest paid.

Downing Street has said the total package will cost £4 billion, with a 3.5 per cent increase next year already factored into NHS budgets.

Health insiders say around £3 billion will come from the Treasury, which confirmed that additional money will be forthcoming, but denied the sum.

This would leave around £1 billion to be found from “reprioritisation” of existing budgets, which ministers say will not hit frontline services.

The Royal College of Nursing and Unison on Tuesday begun balloting more than half a million workers on whether to accept the deal.

'Fair and balanced offer'

Steve Barclay, the Health Secretary, said: “This fair and balanced offer recognises the vital role these hardworking NHS staff play, while protecting our commitment to halve inflation - and I urge union members to accept our offer.

“I’m working with the Treasury to ensure my department has the money it needs to fully fund this pay offer, which will include additional funding and reprioritising existing budgets. This is on top of the existing funding we have already made available for a pay increase of up to 3.5 per cent in 2023-24.

“I want to be clear – there will be no impact to frontline services or quality of care as a result of this offer.”

'Very welcome news'

Matthew Taylor, chief executive of the NHS Confederation, said: “The reassurance from the Health and Social Care Secretary that work is underway with the Treasury to fully fund the pay offer for agenda to change staff will be very welcome news to health leaders.

“We are also pleased to see the Secretary of State reaffirm his promise that this offer will not impact on frontline services.”

Other leaders raised concerns about some funds coming from “reprioritising existing budgets”.

Sir Julian Hartley, chief executive at NHS Providers said: “There is no fat left to trim in health and care budgets. Any pay uplift agreed between the Government and unions must be funded by new money.

“Reprioritising existing budgets could drain funding from other vital areas of the NHS in the long term, putting frontline NHS services at risk of being cut or severely scaled back.”