NHS: Pay

(asked on 29th April 2025) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, if he will make an estimate of the impact of providing a one per cent increase in pay to all NHS staff on Agenda for Change contracts in the 2025-26 financial year on (a) total costs, (b) pension contributions, (c) National Insurance contributions and (d) spillover costs.


Answered by
Karin Smyth Portrait
Karin Smyth
Minister of State (Department of Health and Social Care)
This question was answered on 12th May 2025

The following table shows the total cost of uplifting the Agenda for Change (AfC) pay scales by one percent in 2025/26, as well as the costs of employer pension contributions (EPC), employer National Insurance contributions (ENIC), and spillover elements from that total:

Full cost to the Department, including spillovers

EPC

ENIC

Spillover costs

£950,000,000

£110,000,000

£80,000,000

£240,000,000


These estimates represent the gross cost per one percent uplift payable from National Health Service funding for AfC staff only. The exact cost will vary depending on the workforce size and composition, and these estimates are based on current assumptions. ENIC costs include the cost of the 2025/26 increase in ENIC rates. EPC and ENIC costs relate to the substantive workforce only. Spillover costs allow for full system costs, including EPCs and ENICs, beyond the substantive workforce.

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