Agenda for Change: Pay Deal

Wednesday 3rd May 2023 Written Statements

[The Secretary of State for Health and Social Care (Steve Barclay)]

I am pleased to be able to inform the House that today I am formally confirming that the Government will move to implement the offer made to “Agenda for Change” staff, following the request from the Staff Council on 2 May.

Following consultations with their members, the majority of the AfC unions voted to both accept and implement the offer, which was supported by employers.

As a result, over 1 million eligible NHS staff on the “Agenda for Change” contract will receive two non-consolidated payments for 2022-23. This is on top of an at least £1,400 consolidated pay award that they have already received, which was in line with the recommendations of the independent pay review body.

Eligible AfC staff will receive an award worth 2% of an individual’s salary for 2022-23. In addition, these staff will receive a one-off bonus that recognises the sustained pressure facing the NHS following the covid-19 pandemic and the extraordinary effort these members of staff have been making to hit backlog recovery targets. This NHS backlog bonus is an investment worth an additional 4% of the “Agenda for Change” pay bill, and will mean staff will receive an additional payment of between £1,250 and £1,600. With both of these payments, a nurse at the top of band 5, for example, will receive over £2,000 in total.

For 2023-24, the Government will implement a 5% consolidated increase in pay, backdated to April 2023. In addition, the lowest paid staff will see their pay matched to the top of band 2, which is over £1 more per hour than the national living wage.

As a result, a newly qualified nurse will see their salary go up by more than £2,750 over two years from 2021-22 to 2023-24. On top of this, they will also receive over £1,890 in one-off payments for the 2022-23 financial year.

An experienced paramedic at the entry point of band 6 will see their salary go up by more than £3,000 over two years, from 2021-22 to 2023-24. On top of this, they will also receive over £2,000 in one-off payments for the 2022-23 financial year.

The Government will therefore no longer be seeking recommendations on the 2023-24 pay award from the NHS Pay Review Body (NHSPRB). However, the Government continue to value the work of the NHSPRB and would welcome its observations on the pay deal in England. The Government have written to the NHSPRB to confirm this.

On top of the pay package, the Government have also committed to important measures, including but not limited to:

a review into the timing and appointment process of the NHSPRB to ensure that the pay-setting process and the NHSPRB operates effectively;

identifying ways to tackle and reduce violence against staff;

amendments to terms and conditions to support existing NHS staff develop their careers through apprenticeships;

improving support for newly qualified healthcare registrants; and

Staff Council consideration of the application of a cap to redundancy payments of £100,000 and over.

This package, alongside the comprehensive NHS long-term workforce plan, which NHS England will publish shortly, will help ensure that the NHS can recruit and retain the staff it needs to meet the growing and changing health and wellbeing needs of patients.

[HCWS760]