NHS staff offered eight per cent pay deal

The government has offered nurses and other NHS staff a pay deal worth eight per cent.

Health secretary Alan Johnson said on Monday that his department would increase nurses' pay by 2.75 per cent from this month.

The offer, the highest in the public sector, will see further increases of 2.4 per cent in 2009/10 and 2.25 per cent in 2010/11.

Under the deal nurses will start on a salary of more than £20,000 a year, and ministers pointed out that this amounted to a 24 per cent rise since Labour came to power in 1997.

The prime minister also said three year deals on public sector pay "are an important element of what we can do to contribute to a low inflation economy that is both stable and able to withstand the global financial turbulence".

Union leaders welcomed the deal, and said they would consult with staff on whether it should be accepted.

Johnson said: "I am extremely proud of the outstanding professionalism of NHS staff and the high level of care they deliver for patients day in, day out.

"Today's announcement recognises their tremendous efforts. A multi-year deal ensures security for staff and allows them to plan for their future and the future of their families.

"It also ensures long-term stability for the NHS, which can now push ahead with challenging health reforms with a greater degree of security.

"Patients will see real benefits as the deal fits with the planning cycle of the NHS over the next three years, meaning the health service can focus on delivering improvements such as reducing waiting times and tackling infections on a solid financial base."

He commended the "positive approach to negotiations" taken by NHS Employers and unions, adding that the deal was "fair and affordable" and "good for staff, the NHS and patients".

Chancellor Alistair Darling said the deal "gives certainty for NHS Agenda for Change staff and provides further stability for the wider economy".

Royal College of Nursing general secretary Peter Carter said the package was "better than expected and goes some way towards bridging the gap between nurses' pay and other public sector workers".

Unison's head of health Karen Jennings said: "The proposed deal adheres to the pay review body recommendations and is the highest in the public sector. 

"It does offer pay stability over the next three years. We will be asking our executive to consider recommending this deal to members as a well-balanced package in the forthcoming consultation, and we will expect private sector contractors in the NHS to implement the deal for their low-paid workers following agreement."

The government also said it had accepted in full the pay review body's recommendations to give hospital doctors a 2.2 per cent increase and dentists 3.4 per cent.

On doctors' pay, Johnson said the government wanted "to make sure that GPs work reasonable hours and are fairly rewarded but this must be matched by further improvements in patient services and access".

He said that £105m investment would be spent on "improving the range and quality of services offered by GP practices and into further improving patient experience"

"Promoting health, tackling health inequalities and improving patient access are all priorities for us, and we will work closely with the British Medical Association to assess the areas of greatest need," he said.