DHSC Allocates Funds to Support NHS Pay Recommendations
The Department of Health and Social Care (DHSC) has allocated funds corresponding to this percentage to support the recommendations put forth by the NHS Pay Review Body and the Doctors’ and Dentists’ Remuneration Board. In its written submission, the DHSC expressed confidence that this figure is justified, given the current macroeconomic data and forecasts, alongside the prevailing fiscal and labor market conditions.
Department for Education Proposes Pay Rise for Teachers
Similarly, the Department for Education indicated that a 2.8% pay increase for teachers would help sustain the competitiveness of their salaries amid a challenging financial environment. In its statement to the School Teachers’ Review Body, the department emphasized that this proposed increase is necessary to ensure that teaching remains an attractive profession, particularly following a substantial 5.5% pay award for the 2024/25 period.
Although, this earlier adjustment has resulted in a cumulative salary increase of over 17% across the last three pay awards, potentially elevating the overall increase to more than 21% over four years if the new proposal is implemented.
Proposed Pay Increases Overview
- Current Proposal for 2025/26: 2.8%
- Previous Pay Award for 2024/25: 5.5%
- Cumulative Increase Over Last Three Awards: Over 17%
- Projected Total Increase Over Four Years: Over 21%
Cabinet Office Calls for Limited Pay Rises
The Cabinet Office has also suggested that salary hikes for senior civil servants be limited to 2.8%. In its evidence to the Senior Salaries Review Body, the Cabinet Office referenced forecasts from the Office for Budget Responsibility, which predict an average earnings growth rate of 3% across the economy for 2025/26. The Cabinet Office pointed out the importance of considering these forecasts, especially since the Government has expedited the pay review process this year.
Furthermore, the submission highlighted that HM Treasury has made it clear that no additional funding will be available for departmental pay awards in 2025/26. As such, the Cabinet Office will need to rigorously assess any recommendations that exceed the proposed 2.8%, ensuring that departments can implement necessary measures to accommodate any increased costs.
Concerns Over Insufficient Pay Rise Amid Inflation
Critics have voiced concerns regarding the adequacy of this proposed pay rise. Helga Pile, head of health for Unison, remarked that while the Government has inherited significant financial challenges, this announcement is disheartening for NHS staff. She stressed that healthcare workers are vital to improving NHS performance, yet the suggested increase barely surpasses the cost of living.
Current forecasts from the Office for Budget Responsibility indicate that inflation is expected to average around 2.5% this year and 2.6% next year, further complicating the financial landscape for public sector workers.
