06 October 2006
The chancellor and the NHS are on a collision course with unions after suggesting that next year's pay rises should not break the government's 2% inflation target.
NHS Employers' evidence to the two health service pay review bodies, published on October 4, said staff should not receive rises higher than inflation.
As last year, Gordon Brown wrote to all the public sector pay review bodies in the summer asking for all rises to be capped in line with his 2% consumer price index target.
NHS Employers told the independent bodies that the financial difficulties felt by the service meant 2% was the most that could be afforded.
'Any greater award would almost certainly lead to further reductions in posts, vacancy freezes and failure to meet health care and financial targets,' said Gill Bellord, NHS Employers' head of pay and negotiations. 'Employers feel strongly that on grounds of fairness the pay award should be the same for all NHS staff groups.'
She added that most staff members will receive an annual increment – amounting to an average increase before the pay review bodies' recommendations of 3% for nurses, 4% for consultants and up to 6% for junior doctors.
NHS Employers based its evidence on an online questionnaire sent to NHS organisations over the summer.
Josie Irwin, Royal College of Nursing head of employment relations, said this was flawed as only around 80 of a possible 600 respondents completed the survey. She dismissed claims that higher pay rises would affect patients as 'alarmist shroud-waving', while the focus on annual increments was a 'red herring'.
Irwin added: 'We have criticised the use of the CPI given that it excludes housing costs. If you do a reality check, you will see how inflation is affecting what staff can afford.'
The RCN and Unison are expected to call for a 'substantial' (though unquantified) pay rise when they publish joint evidence on October 12.
A Unison spokeswoman said: 'We need to ensure there is no artificial limit on pay rises or it will undermine the integrity of the review body system. Evidence must be weighed up fairly and a decision taken without government interference.'
PFoct2006
