A proposal for a three-year pay deal has been agreed between NHS Employers, the two largest NHS trade unions (Unison and RCN) and the Department of Health.

The package has been agreed for England and is being considered by the other health departments. It is subject to consideration by all trade unions covered by the Agenda for Change agreement.

The NHS Pay Review Body's recommendation of a 2.75 per cent headline pay uplift would form the first year of the deal with a negotiated package for the subsequent two years. The package is worth 7.99 per cent over three years with headline uplifts as follows:

• 2008/09 2.75 per cent
• 2009/10 2.4 per cent
• 2010/11 2.25 per cent

The deal contains some structural adjustments in years two and three, areas for future talks and some non-pay elements.

We believe that longer term pay deals help create a climate of stability for both employers and staff which will help employers with service and financial planning and will remove the element of doubt from staff about the level of forthcoming pay awards.

Supporting documents

The following documents support the proposed multi year agreement:

• Proposed multi year agreement
• Pay rates for proposed multi year deal
• Time off and facilities for trade union representatives
• Improving working lives of NHS staff

Doctors and Dentists

The Secretary of State for Health announced that the pay recommendations made by the Doctors' and Dentists' Review Body (DDRB) have been accepted in full by the Government.

This means that from 1 April 2008:

• consultants, the staff, specialty and associate specialist group of doctors, doctors in training and salaried dentists will receive a 2.2 per cent uplift
• salaried general medical practitioners will receive a 2.2 per cent uplift to the minima and maxima of their pay range
• the supplement for GP registrars will reduce from 55 per cent to 50 per cent
• general dental practitioners will receive a 3.4 per cent increase in their gross earnings base intended to result in 2.2 per cent increase in income after expenses
• general medical practitioners will receive an uplift of 2.7 per cent to global sum payments only and to be offset by savings in Correction Factor Payments. The overall increase in cost to the GMS contract is likely to be 0.2 per cent.

NHS Employers will publish a new pay circular for doctors and dentists as soon as is practicable. The circular will also incorporate information on the pay and allowances of salaried dentists and dental public health staff.

The full reports of the Doctors' and Dentists' Review Body and NHS Pay Review Body are available on the Office of Manpower Economics website.

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DH - Johnson: proposed three-year pay award is good news for staff, the NHS and patients

• Extract from : http://tinyurl.com/5clvyq

Health Secretary Alan Johnson today announced that the Department had agreed with NHS Employers, UNISON and the Royal College of Nursing (RCN) a proposed three-year pay package for all NHS Agenda for Change (AfC) staff - including nurses, midwives and Allied Health Professionals - which will now be subject to consultation by members of all the trade unions covered by AfC. The proposed package incorporates the NHS Pay Review Body Recommendation for 2008/09.

The proposal includes:
- acceptance in full of the 2008/09 NHS Pay Review Body's recommendations for a 2.75 per cent pay rise for nurses and other healthcare professionals from 1 April 2008;
- 2.4% headline award in 2009/10;
- 2.25% headline award in 2010/11;

additional changes to the pay structure in Years 2 and 3 that would give extra financial support for the lowest paid workers, allow quicker progression up the pay ladder and increase the earning potential for hundreds of thousands of staff.

Alan 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.
• "I would like to thank the NHS Employers and unions for their positive approach to negotiations. I believe we have worked towards achieving a fair and affordable deal that is good for staff, the NHS and patients.

Chancellor of the Exchequer Alistair Darling said:

•  "A three year pay deal gives certainty for NHS Agenda for Change staff and provides further stability for the wider economy."

The decision means that:
- The minimum starting salary for nurses will now be more than £20,000 for the first time (£20,224) from April 1. This is 24% increase since 1997 in real terms.
- Experienced midwives will now have an earnings potential of £32,653 from 1st April 2008 - an increase of 70% in cash and 28% in real terms since 1997.

The Government is also today accepting in full the recommendations of the Doctors and Dentists Pay Review body for 2008/09. These are:
- 2.2% increase for hospital doctors and hospital doctors and dentists in training;
- 3.4% increase in the gross earnings base for general dental practitioners (GDPs). This is intended to result in an increase in GDPs income of 2.2% after allowing for an increase in expenses;
- increasing payments to GP practices for providing core services - known as the Global Sum by 2.7% which having taken account of the cost of expenses equates to a 2.2% increase in earnings;
- no increase in the protected income that most GP practices receive. This means that overall impact of the Doctors and Dentists Pay Review body is estimated as a 0.2% average increase in payments to GP practices. It will allow the NHS to invest the up to 1.5% guaranteed for primary care for 2008/09 in new patient services.

Alan Johnson said:

• "We want 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.
• "This why we're honouring our commitment to increasing investment in GP services by 1.5%, which is equal to £105 million. Most of this investment will now go into improving the range and quality of services offered by GP practices and into further improving patient experience, for instance by expanding services provided at weekends or evenings, or by making physical improvements to surgeries."
• "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."

Notes
1) The proposed headline increases for Agenda for Change Staff over the three years (2.75% in year 1, 2.4% in year 2 and 2.25% in year 3) represents a 7.58% cumulative increase for the three years. This together with the cost of restructuring gives a total cumulative cost of 7.99%

2) For all the supporting documents, please go to the NHS Employers website: http://www.nhsemployers.org/pay-conditions/pay-conditions-3612.cfm