The reports have been laid before Parliament today (Cm 8831 and Cm 8832). Copies of the reports are available to hon Members from the Vote Office and to noble Lords from the Printed Paper Office.
NHS PAY REVIEW BODY
Thank given to the NHS Pay Review Body for its 28th report and note its recommendations and observations.
In the wake of the public inquiry into Mid Staffordshire NHS Foundation Trust, the first priority must be to ensure that the NHS can afford to employ the right number of frontline staff needed to ensure the safe, effective and compassionate care that patients have a right to expect.
The NHSPRB’s recommendations for a 1 per cent consolidated rise for all staff, on top of automatic increments, are unaffordable and would risk the quality of patient care. Without a pay rise, incremental pay increases already commit nearly £1billion every year for all NHS employees and add 2 per cent each year to the NHS pay bill for Agenda for Change staff. The PRB proposals suggest a pay rise that would risk reductions in front line staff that could lead to unsafe patient care. It is not possible to maintain appropriate numbers of front line staff, give a general pay rise of 1 per cent and pay for incremental progression.
The Government is therefore adopting an approach by which all staff will receive at least an additional 1 per cent of their basic pay next year. All staff who are not eligible to receive incremental pay will be given a 1 per cent non-consolidated payment in 2014/15. Other staff will receive an increase of at least 1 per cent through incremental progression.
It is the intention that in 2015/16 the same approach will apply and staff who are not eligible to receive incremental pay will receive a non-consolidated payment of 2 per cent of pay, whilst other staff receive incremental progression. As this will be a two year pay award, the NHSPRB will not be asked to make recommendations on a pay award for Agenda for Change staff in the 2015 pay round.
NHS staff are dedicated and hard working and the Government would prefer all NHS staff to receive a consolidated 1 per cent increase. This would be affordable if incremental progression was frozen for one year in 2015/16. If the NHS Trade Unions were prepared to agree to this then the Government would be prepared to reconsider the position and make a consolidated award as other public sector workforces are receiving.
The Government agrees with NHSPRB’s observation that a thorough review is required of the Agenda for Change pay structure, including the operation of incremental scales, so that it might better support the challenges facing the NHS in terms of both patient care and affordability.
Offer to look into this, given an appropriate remit and evidence and it will be considered whether to ask them to look at contract reform issues in next year’s report.
REVIEW BODY ON DOCTORS’ AND DENTISTS’ REMUNERATION
Thank given to the Review Body on Doctors’ and Dentists’ Remuneration for its 42nd report, note its recommendations and observations, and:
- in respect of General Medical Practitioners (GMPs), accept its recommendation for an increase of 1 per cent to general medical practitioners’ income after allowing for movement in their expenses, equating to an uplift of 0.28 per cent to the overall value of general medical services contract payments for 2014-15; and
- in respect of General Dental Practitioners (GDPs), it is accepted that recommendation for an increase of 1 per cent to general dental practitioners’ income after allowing for movement in their expenses, but abate the increase in the general dental service contract for GDP staff costs from the recommended 2.5 per cent to 1 per cent. This results in an overall uplift of 1.6 per cent to be applied to gross earnings for independent dental contractors for 2014-15.
In respect of employed doctors and dentists, they are clear that in the wake of the public inquiry into Mid Staffordshire NHS Foundation Trust, the first priority must be to ensure that the NHS can afford to employ the right number of frontline staff needed to ensure the safe, effective and compassionate care that patients have a right to expect.
The DDRB’s recommendations for a 1 per cent consolidated rise for all staff, on top of automatic increments, are unaffordable and would risk the quality of patient care. Without a pay rise, incremental pay increases already commit nearly £1bn every year for all NHS employees and add 2 per cent each year to the NHS pay bill for employed doctors and dentists. The DDRB proposals suggest a pay rise that would risk reductions in front line staff that could lead to unsafe patient care. It is not possible to maintain appropriate numbers of front line staff, give a general pay rise of 1 per cent and pay for incremental progression.
The Government is therefore adopting an approach by which all staff will receive at least an additional 1 per cent of their basic pay next year. All staff who are not eligible to receive incremental pay will be given a 1 per cent non-consolidated payment in 2014/15. Other staff will receive an increase of at least 1 per cent through incremental progression.
It is the intention that in 2015/16 the same approach will apply and staff who are not eligible to receive incremental pay will receive a non-consolidated payment of 2 per cent of pay, whilst other staff receive incremental progression. As this will be a two year pay award, the DDRB will not be asked to make recommendations on a pay award for employed doctors and dentists in the 2015 pay round.
NHS staff are dedicated and hard-working and the Government would prefer all NHS staff to receive a consolidated 1 per cent increase. This would be affordable if incremental progression was frozen for one year in 2015/16. If the NHS Trade Unions were prepared to agree to this then the Government would be prepared to reconsider the position and make a consolidated award as other public sector workforces are receiving.
It is noted that the DDRB would welcome a proactive and systematic approach to considering contractual issues at an appropriate stage of the consultant and doctors in training negotiations and will consider whether to make this part of their remit for the 2015 pay round.