Just yesterday, Downing Street announced that it would provide no further money for pay increases. This decision is taken in the face of growing calls from public sector pay review bodies for above inflation increases for public sector workers. Sir Keir Starmer, the leader of the Labour Party, is on a beginning of a tour of hospitals. His vision is to champion reforms that will strengthen the NHS and address persistent staff shortages and lengthy waiting lists.
As a result last year, the government largely went along with hard-fought recommendations from independent pay review bodies. Consequently, all public sector workers (including NHS workers and teachers) were awarded pay raises of 4.75% to 6%. The new recommendations for new pay deals have gone well beyond the budgeted totals agreed by ministers. Approximately 2.5 million public sector employees will experience the consequences of these recommendations. This group comprises nearly 45% of the total workforce and is at risk of an estimated £100 billion pay bill.
Sir Keir Starmer didn’t shy away from calling to address pay, quite the reverse. He understands this is a key element of his overall plan to provide better NHS services. He said that until these points were sorted out, they wouldn’t make progress in clearing waiting lists. In just the past six months, those lists have already begun to fade.
“I think what we’ve proved is by working with staff, we get better results.” – Sir Keir Starmer
In his reply, Starmer made a notable commitment that the government would fully assess the pay proposals. So they will surely bide their time before issuing an official reply.
“As for the pay recommendations, we will look at them and we will respond in due course,” – Sir Keir Starmer
Today, the independent pay review bodies have, once again, recommended an inflation-busting 4% pay rise for teachers in England. They further propose a 3% increase for NHS staff this year. Both figures are well above the 2.8% originally planned for by the government. This gap between available funding and departmental needs has led to questions regarding the departments’ ability to cover the highly recommended awards.
A spokesperson for the Prime Minister remarked on the financial constraints facing the government: “if recommended awards exceed what departments can afford.” This comment highlights the challenge of balancing staff compensation demands with the need to be fiscally responsible.
Stephen Kinnock, Health Minister, restated the government’s commitment despite financial constraints. At the same time, he wants to increase pay for all of the state’s workers.
“We are all about putting more money into the pockets of working people, but we do also have to ensure that we are balancing the books, and we have got to work in terms of public sector pay within fiscal constraints.” – Health Minister Stephen Kinnock
Trade unions should respond with creative and constructive engagement, but not with denial about the reality of the fiscal crisis. He argued that pay awards need to be above inflation. Just as importantly, he noted that these grants need to address substantive recruitment and retention issues.
The British Medical Association (BMA) has criticized the government’s approach, stating it “indicates a poor grasp of the unresolved issues from two years of industrial action.” This is indicative of the increasing frustration seen among clinicians, many of whom feel that their issues are not being sufficiently heard or solved.
As discussions continue regarding public sector pay and reforms in the NHS, Sir Keir Starmer’s tour aims to highlight the necessity of collaboration between staff and government to achieve better outcomes. The ongoing dialogue around fair compensation remains a crucial aspect of improving public services as both sides navigate financial limitations and workforce needs.
