RCN response to decision by the independent NHS Review Body
Published: 18 December 2008
Responding to the decision by the independent NHS Review Body not to request a remit from the Secretary of State to review the pay settlement contained in the 3 year NHS pay deal, Dr Peter Carter, RCN Chief Executive & General Secretary, said:
“We are extremely disappointed that the Review Body is not recommending reopening NHS pay talks. But the fact is the economy has changed dramatically since the three year deal was signed, lurching from the highest inflation levels in 16 years to recession and associated job losses.
“These are tough times for everyone, including hard working nurses and low paid healthcare assistants. Record numbers of our members have turned to the RCN for help dealing with financial difficulties, including home repossession over the past few months. While there are signs inflation is now falling, the impact of spiralling inflation earlier this year – on mortgages, utility bills and costs of living continues to have a devastating effect on the everyday lives of our members.”
Next year the RCN will be resubmitting evidence to the Pay Review Body on the impact of the economic changes on our members, the labour market and recruitment and retention levels in the NHS.
Negotiators did a good job to secure a front-loaded deal that remains the highest award negotiated for public sector staff for 2008-2010 and which compares very favourably with private sector settlements.
The Review Body has considered all the available evidence and found the following:
• that there is no new evidence of a significant and material change in recruitment and retention (although they have concerns about levels of ‘on the day’ vacancies and morale indicators and want to keep these under review)
• the wider economic and labour market situation has changed significantly but the Review Body do not consider these changes have materially affected the relative position of NHS staff, or that the Agenda for Change pay structure is getting out of line with the wider labour market
They have therefore decided not to request a remit from the Secretary of State to review the pay settlement contained in the agreement between the parties for 2009/10.
They also do not think it appropriate to take a view on the increases for 2010/11.
They will however undertake a review of all the available evidence in autumn 2009 to consider whether to seek a remit from the Secretary of State to review the pay settlement contained in the agreement for 2010/11.
Key findings of the Pay Review Body
• Low vacancy rates and vacancy rates had decreased for all staff groups in 2008
• Low turnover compared with the rest of the economy
• Headline average earnings growth in the public sector currently exceeds the private sector
• Median pay settlements for the public sector 2.6% are lower than for the private sector 3.8% but the median pay of full-time nurses and midwives is higher than the whole economy median and has been consistently higher
• Between 2007 & 2008, median weekly pay of NHS staff increased by 5% compared with an increase of 4.6% for all full-time employees
• Median weekly pay of all NHS staff exceeded that of the wider UK economy in all regions and countries except London
• Inflation is on a downward trajectory – CPI at 4.1% and RPI at 3% in November
The 3-year deal
• All NHS staff will receive a 2.4% pay increase from 1 April 2009 but the structural changes mean that staff on bands 1, 2, 3, 4, and 5 and 6 (pay points 1-13 and 17-25) will receive higher percentage uplifts.
• Staff side negotiators have been outspoken in support for the Review Body
• The 3 year deal remains the best deal negotiated for public sector staff
• The public will have little sympathy for staff already guaranteed a pay increase in 2009 given many others will have no idea what their salary will be or even if they will have a job in April 2009
• There is no process by which the staff side can challenge the Review Body’s decision and any challenge is unlikely to be seen sympathetically by the public