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NHS Staff to Receive Above-Inflation Pay Rise of up to 5.4% for Second Year

NHS Staff Get Up to 5.4% Pay Rise for Second Year

NHS staff, including doctors and nurses, will receive real-terms pay rises for a second consecutive year. The Health Secretary has accepted recommendations from the independent pay review bodies covering all NHS employees. These increases will be backdated to April and reflected in August pay packets.

Broad Pay Increases Across NHS Roles

The government confirmed a 4% rise for consultants, specialty doctors, GPs, and dentists. Dentists will also see a contract uplift. Junior doctors will receive an average 5.4% increase, comprising a 4% rise plus a £750 consolidated payment.

Agenda for Change (AfC) staff, including nurses, midwives, ambulance crews and cleaners, will receive a 3.6% pay boost. This raises the starting nurse salary from £27,055 in 2022-23 to around £31,050 this year — a £4,000 increase over three years.

Department Commits to Structural Pay Reform

The Health Department will allow the NHS Staff Council to reform the AfC pay structure next year. This follows concerns about pay banding within the framework. The move aims to support fairer progression and retention.

Health Secretary Backs NHS Workforce

Health Secretary Wes Streeting addressed the significance of the increases. “These are thoroughly deserved pay rises for all our hard-working nurses, doctors and other NHS staff,” he said. He added that the NHS had been left “broken” by years of underinvestment and strained industrial relations.

Mr Streeting stated: “We are backing our health workers with above-inflation pay rises for the second year in a row.” He recognised that this would not undo over a decade of stagnation in one year but noted the step forward.

“We have worked with staff to cut waiting lists by 200,000 and put the NHS on the road to recovery,” he said. He stressed that these pay rises show continued support for NHS recovery.

NHS Leadership Welcomes Decision

Sir Jim Mackey, its Chief Executive, welcomed the announcement. “Today’s announcement of a real terms pay rise shows the government’s support for NHS staff,” he said. He recognised the increases as acknowledgment of NHS workers’ continued efforts during high-pressure conditions.

Sir Jim added that the  would now focus on cutting waste and duplication. The goal is to offer better patient care while operating more efficiently.

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Funding Through Central Budget Reform

Pay uplifts will be funded by reducing waste in the central health budget. The Health Department has pledged not to cut frontline services to meet pay commitments.

Savings come from:

  • Cutting duplication between the department and its England
  • Reducing it England headcount
  • Slashing corporate service budgets such as NHS communications
  • Halving integrated care board costs

These reforms have created space for a full, above-inflation pay uplift without compromising patient-facing services.

Accelerated Pay Schedule Sets New Standard

This year’s pay awards are the earliest in years. Pay increases backdated to 1 April will appear in August, two months earlier than last year. The government aims to speed up future awards to better align with the financial year.

The Health Department plans to remit the pay review bodies for 2026 to 2027 by the end of July. This will be two months earlier than the previous year’s remit and aims to implement awards promptly in that period.

Further Details to Follow Pending Treasury Review

Details of the proposed pay structure reforms for AfC staff will be finalised after the department agrees its Spending Review with the Treasury. This agreement will guide the implementation of changes designed to address long-standing pay banding concerns.

Sustained Investment in NHS Workforce

This marks the second consecutive year of real terms it pay increases. The government signals that sustained investment in staff is central to rebuilding the . Officials assert that continued reform will ensure the service becomes more efficient and future-ready while recognising staff dedication.

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