The chancellor wrote to all pay review body chairs, having announced in his autumn statement an end to the pay freeze after 2012/13, but that to support fiscal consolidation, for each of the following two years, the government would seek public sector pay awards that average at 1%.
The government invites NHSPRB to make recommendations on how the funding might best be distributed taking account of:
- continued strong recruitment, retention and motivation of AfC staff
- the fact that about 60% of these staff receive annual incremental pay rises averaging 3.5%
- the fact that any element of these funds not used for pay will be retained in the NHS and may be better employed on other issues such as increasing staff numbers or improving patient services.
The Department of Health, therefore, invites the NHSPRB to consider this and make recommendations for the distribution of the available funds of up to one per cent, balancing the public’s aspirations for continuing NHS service improvements on the one hand, and pay levels necessary to deliver a workforce of the required size, skill, motivation and morale on the other.
The produced by the Department provides high level evidence for the NHSPRB focusing on the economic and financial (NHS) funding and strategic policy.