Question to the Department of Health and Social Care:
To ask His Majesty's Government what estimate they have made of (1) the total cost of the 2026–27 pay award for NHS Agenda for Change staff in England, and (2) the cost of that award above the affordability assumption set out in their evidence to the NHS Pay Review Body.
The Government has accepted the NHS Pay Review Body recommendation for the 2026/27 headline pay award, for all National Health Service staff on Agenda for Change terms and conditions in England, of a 3.3% consolidated pay rise effective from April 2026.
The pay uplift is above the Office for Budget Responsibility’s forecast inflation of 2.2% for 2026/27 and delivers a real terms pay rise for NHS staff.
The total cost for the 2026/27 pay award is estimated to be £3,250 million, and the likely impact above the 2.5% affordability assumption is estimated to be approximately £800 million. However, the exact cost will vary depending on the workforce size and composition during the year.
This additional pressure above affordability will be managed by the Department and our arms length bodies, including NHS England central budgets, but the pay increases will not be paid for by cutting frontline services.
It is vital that pay awards are fair for both workers and the taxpayer, so public services can deliver high-quality services across the country.