Speak up for Public Services Public Sector Pay Bulletin. National Health Service. Who Works in the National Health Service?

Transcription

1 Speak up for Public Services Public Sector Pay Bulletin National Health Service This bulletin is part of series of publications which looks at different sections of the public sector and examines the impact of the government s pay policy. This bulletin looks at the NHS. Public servants make a huge contribution to society and the economy. Their work should be fairly rewarded. But the government wants them to put up with below inflation pay rises for the next three years. Who Works in the National Health Service? There are around 1.3 million staff in the NHS in England. Of these, just over 50% are professionally qualified clinical staff, including doctors, nurses, midwives, healthcare scientists, ambulance staff and allied health professionals. Allied health professional roles includes a range of staff such as physiotherapists, radiographers, orthoptists, psychologists and psychotherapists, dieticians, and chiropodists. The remainder work in support roles either in GP practices, hospitals and other healthcare settings, or in central NHS infrastructure organisations. Support staff work in a wide range of areas including administration, estates management, finance, HR, domestic services, lab support and health informatics. In addition, just under a fifth of all NHS staff are managers. NHS Pay Determination The majority of staff working in the NHS is covered by the NHS Pay Review Body (NHSPRB). Doctors and dentists are covered by the Doctors' and Dentists Review Body. The NHSPRB determines the terms and conditions for 1,155,000 employees in the UK. This includes nursing staff and other health professionals; scientific, technical and therapeutic staff; ambulance paramedics and technicians; administrative and clerical staff; ambulance control staff, ancillary and maintenance staff. The Review Body is required to take account of the economic and other evidence submitted by the UK Health Departments, trade unions, representatives of NHS employers and others. The unions involved are: British Dietetic Association (BDA) British and Irish Orthoptic Society (BOS) Community and District Nursing Association (CDNA) Chartered Society of Physiotherapists (CSP) Federation of Clinical Scientists GMB Royal College of Midwives Royal College of Nursing Society of Chiropodists and Podiatrists (SCP) Society of Radiographers (SoR) Union of Construction, Allied Trades and Technicians (UCATT) UNISON Unite

2 The Doctors and Dentists Review Body covers around 160,000 UK hospital and public health doctors, salaried GPs and dentists. NHS Pay Review Body - last year s pay award In 2007 the pay review body recommended a 2.5% increase, which the government then decided to stage, with 1.5% paid from 1 April 2007 and 1% from 1 November The staging made the award worth 1.9% over the year. Initially rejected by the unions, the offer was improved for the lowest-paid staff and was accepted as the best deal that could be negotiated. The lowest-paid employees received an increase worth 2.3% over the year and an extra 38 was given to staff towards professional fee payment. By staging the pay award in England, the government saved around 160 million. Staging was only implemented in England, with the award being paid in full in Scotland, Northern Ireland and Wales. In this year s report, the review body described the staging as extremely disappointing because the rationale of keeping pay down to control inflation is not backed by evidence. It said: We have yet to see the economic rationale for public sector pay being capped at 2 per cent. This lack of clarity is surprising and disappointing, particularly when Scotland, Wales and Northern Ireland felt able to implement the pay award in full. Last year, the review body was extended to cover all staff groups under the Agenda for Change pay system. This meant that admistrative, clerical, ambulance control staff, maintenance and ancillary workers who were previously covered by the NHS Pay Negotiating Council were brought under the remit of the main review body. As part of last year s settlement, the parties agreed to continue talks to explore a multi-year deal covering pay and non-pay issues Agenda for Change is the single pay system in operation in the NHS. It applies to all directly employed NHS staff with the exception of doctors, dentists and some very senior managers. NHS Pay Review Body - this year s pay award Last year s award took place against a backdrop of large financial deficits. When the review body submitted its report in February 2007, the NHS in England was forecasting a deficit for of 94 million. As the Department of Health submitted its written evidence for the 2008 pay round, the NHS in England was forecasting a surplus for of 983 million which at the turn of the year had been revised to a projected surplus of 1.8 billion. However, the Department of Health stated that the higher forecasted underspend could not be committed for new expenditure (including pay). The trade unions embarked on a twin-track approach, negotiating on a potential multi-year deal whilst at the same time presenting evidence to the NHSPRB for a single year deal. The trade unions called for an above-inflation pay increase for 2008 to make up for the staged increase in Their joint submission to the review body called for a rise above RPI inflation and a similar uplift in the value of allowances, such as recruitment and retention allowances. The trade unions stated they believe that not only is an above inflation pay award affordable to Government, but that they can not afford to contribute further to the low morale and motivation of the NHS workforce if they are to increase efficiency and improve quality, safety and access of services.

3 The pay review body recommended an increase of 2.75% for This is currently the highest award in the public sector pay round and breaches the Treasury s 2% pay target. For this reason, the government has added a caveat, in making the PRB recommendation part of a 3-year negotiated package worth around 8%. The 3-year deal is worth increases of 2.75% this year, 2.4% next year and 2.25% in 2010, with extra money for the lowest paid workers and prospects of faster promotion up the pay ladder making the total value 8.1%. Part of the 3-year deal is a re-opener clause that would enable trade unions to submit evidence to the NHSPRB that the pay increases for years 2 and 3 should be reviewed. The review body would be able to ask the health secretary to review the planned pay increases during the second and third years if inflation rises, or if changes in recruitment, retention, or labour market conditions make life more difficult for staff members. If the full deal is not implemented, staff have been told that they may not receive the original 2.75% recommendation. The details of the 3-year deal are as follows: Year 1: ÄÅ 2.75% on all pay points and allowances ÄÇ The minimum wage in the NHS would rise to 6.40per hour Year 2 ÄÉ 2.4% on all pay points and allowances ÄÑ Removal of lowest point in band 1 (includes workers in catering, cleaning, sterile services, laundry and linen and portering services) ÄÖ Additional increase on most points in band 5 (This includes newly qualified clinicians such as nurses, occupational therapists, midwives, physiotherapists and podiatrists. Also a range of healthcare science jobs, many paramedics and some ambulance technicians. Non-clinical roles such procurement officers, catering managers, patient advice and liaison managers, personal assistants, payroll team managers, information technicians and librarians) ÄÜ Additional increase on first 3 points in band 6 (wide range of clinical and non clinical jobs including specialist therapists, registered midwives, audiologists, HR advisers and health promotion specialists, estates officers, specialist technicians and finance section managers) Äá The minimum wage in the NHS would rise to 6.77 per hour Äà Total value 2.54% Year 3 Äâ 2.25% on all pay points and allowances above point 14 (band 4) Ää 420 for all pay points at point 14 and below Äã Removal of mid-point of band 5 Äå Additional increase on most points in band 5 Äç Additional increase on first three points in band 6 Äé NHS minimum wage would rise to 6.98 per hour Äè Total value 2.50%

4 Additional non-pay elements: Äê Re-opener clause in case of significant economic change Äë Negotiations on reduction in working week linked to productivity Äí Agreement to negotiate restructuring to reduce number of pay points in long bands Äì Commitment to increase the number of apprentices in NHS Äî New trade union facilities agreement Äï Policy statement on work-life balance Union Reactions The following unions issued a statement on the proposed agreement: Unite; Royal College of Midwives, Chartered Society of Physiotherapy; Society of Radiographers, Society of Chiropodists and Podiatrists; British and Irish Orthoptic Society; British Dietetic Association; Federation of Clinical Scientists. We would accept the NHS Pay Review Body s recommendation of 2.75% on NHS staff pay for 2008/9 because of our commitment to the independent pay review body process. However the proposed offer of 2.4% and 2.25% for years 2 and 3 after the PRB recommendation gives us great cause for concern as the current uncertain economic situation leads us to believe that it would not meet our members expectations and would represent a real terms pay cut for our members. Unison is balloting its members on the offer with a statement that if members wish to reject, they would need to support industrial action to secure an improved pay offer as part of a single or multi-year deal. The ballot ends on 6th June. The Royal College of Nursing is consulting their members and recommending they accept the offer. The Doctors and Dentists Review Body Last year, the Review Body recommended an increase in basic pay of 1,000 for most senior hospital doctors and dentists and salaried GPs and increase of 650 for junior doctors and dentists in training. Where the increase did not amount to a rise of over 1.5% it was paid in full from 1 April If increases exceeded 1.5% the award was staged, with 1.5% paid at 1 April 2007 and the remainder at 1 November This year, the Review Body recommended an increase of 2.2% to the salary scales and all allowances for doctors and dentists from 1 April Inflation The main reason the government has given for the 2% pay target is that pay restraint is necessary to fight inflation. The TUC, the public sector trade unions and many distinguished academics have disputed this. Public sector pay rises are the victim not the source of inflation, as pay awards tend to follow the inflation trend. It is escalating energy and food costs that are driving inflation not public sector pay. The TUC also disagrees with the government s use of the Consumer Prices Index (CPI) as its main measure of inflation. It ignores all housing costs and council tax costs faced by the majority of public sector workers. Private sector negotiations are all based on the Retail Prices Index (RPI) which includes housing costs and so should those in the public service.

5 Speak up for Public Services represents 26 public sector trade unions, together with the TUC. It is campaigning against unacceptable pay settlements for public service workers. It is calling for: Äñ no more below-inflation pay awards and no staging of awards Äó Äò a real commitment to equal pay retention of, and respect for, the independence of pay review bodies and other pay mechanisms For more information, contact Rachael McIlroy at the TUC. rmcilroy@tuc.org.uk