Rachel Reeves, in an address to parliament this afternoon (29 July), said she was accepting the recommendations of pay review bodies (PRBs) for health and education for 2024-25.
Today’s speech from the chancellor came alongside the publication of her audit into public finances, which she promised shortly after the election.
This audit document confirmed that recommendations from the NHS PRB, and PRBs representing doctors, dentists, teachers and other public servants had been met.
For staff on NHS Agenda for Change contracts, this will mean a 5.5% pay rise, according to a treasury spokesperson. This was substantially higher than the 2% the government expected.
Band 5 entry-level registered nurses would, if this offer is accepted by the unions, receive a pay rise of more than £1,500.
Meanwhile, pay for doctors and dentists would rise by 6%, plus a £1,000 consolidated payment, for 2024-25.
Professor Nicola Ranger, Royal College of Nursing (RCN) general secretary and chief executive, said her union's members would vote on whether the 5.5% pay offer for Agenda for Change staff was "enough of a start" to improving pay.
"When it comes to pay in the NHS, all professional groups deserve a clear route to fair pay restoration – making up for a very serious loss of earnings in the last 15 years," said Professor Ranger.
"Stagnant salaries at a time of spiralling prices forced too many to leave and deterred others from joining.
“We do not begrudge doctors their pay rise. We work together closely, in the interests of our patients. What we ask for is the same fair treatment from government."
She added: "Nurses are the ever-present, safety critical workforce across the whole of health and care. Our wages do not reflect that and still won’t after today.
"We will be pushing government to show us their plans for improving NHS pay – it is vital to recruit and retain nursing staff, fill tens of thousands of vacant nurse jobs and give people the care they deserve.”
In her speech this afternoon, however, Ms Reeves also announced a slew of public service cuts, including a pause on the New Hospital Programme which aimed to build 40 new hospitals by 2030, in response to a £20bn “black hole” in the government’s budget.
Previous plans to reform social care charges, including a cap on how much anyone in England should spend on personal care in their lifetime, were also scrapped.
Ms Reeves said social care had been “neglected", and acknowledged that reforms were needed, but said these plans would not be possible and scrapping them would save £1bn by the end of 2025.
“I can understand why people and members are angry, I am angry too,” she said.
“The previous government let them down.”
The chancellor announced cuts to benefits, including removing winter fuel payments for those not in receipt of pension credits; transport; the Rwanda scheme and warned of more cuts to come in the autumn budget on 30 October.
Meanwhile, Ms Reeves also announced the creation of a ‘Covid corruption commissioner’, to try and recoup money lost from fraud Covid-19 contracts.
She said: “[This will] bring back money owed to the tax payer after contracts worth billions of pounds were handed out by the previous government during the pandemic.”
Further, Ms Reeves said government departments would need to find at least £3bn in savings to “absorb” the cost of the public sector pay deal, which was higher than she anticipated, and that all non-essential government spending on consultants and communications would be scrapped.
She accused the previous government of “covering up” the true extent of the state of public finances, in particular the £20bn gap, and claimed that previous chancellor Jeremy Hunt had made spending commitments which could not be kept in an attempt to win the general election.
Mr Hunt, in response to Ms Reeves' criticism, claimed that the new chancellor was trying to "lay the ground" for tax rises she "didn't have the courage to tell us about".
"[Ms Reeves] says the information is new, but she herself told the Financial Times that you don't need to win an election to find the state of the finances," said Mr Hunt.
"Paul Johnson, of the Institute of Fiscal Studies, said the state of public finances were apparent pre-election for anyone who cared to look, which is why he says her argument isn't credible and won't wash."
Source:- Nursing Times
