Wed, 2 Feb 2011

NHS unions fight pay freeze

Trade unions have rejected plans to freeze NHS staff increment payments for two years, but NHS Employers says the proposal remains.

Unison, the Royal College of Nursing and the British Medical Association (BMA) all refuse to back the plans, which would affect both clinical and non-clinical staff earning up to £34,000 – more than 80% of the NHS workforce.

NHS leaders say the framework would save an estimated £1.9bn, representing 2.1% of the NHS paybill.

In return, compulsory redundancies for all staff below the cut-off would be avoided.

Dr Hamish Meldrum, BMA’s chairman of the council, said its members overwhelmingly oppose the idea. ‘At a time of rising inflation, their pay has been frozen for two years, and this latest proposal would amount to further severe real terms cuts,’ he said.

NHS Employers warned that failure to reach a national agreement would leave NHS trusts to address financial challenges locally, which would likely lead to job losses. ‘If we don’t secure a deal there will be compulsory redundancies,’ said Dean Royles, NHS Employers’ director.

Currently, NHS employees move up the increment pay scale each year. Increases range from around £350 in the lowest band up to around £5,000 in the top band.