NHS pay demands could wipe £4.8bn off £12bn raised by NI rise

NHS pay demands could result in the additional funding generated from the National Insurance rise being £4.8billion lower, an analysis by The Daily Telegraph has found.

A number of the biggest health service unions have threatened to consider strike action unless their requests are met, with the largest increase a 22 per cent rise demanded by junior doctors.

Last night MPS said that the demands placed further questions over the benefits of the National Insurance rise and called for wage increases to be “proportionate and sensible” as the country faces a cost of living crisis. Analysis by this newspaper found that the British Medical Association’s (BMA) demands for a 22 per cent rise for junior doctors could set the Treasury back around £482 million, while the Royal College of Nursing’s demand for a rise matching the rate of inflation, which is set to reach 11 per cent, plus an extra 5 per cent, could cost £1.7 billion.

To meet the demands of other NHS staff – many of whom are represented by Unison, whose general secretary has called for an imminent rise to be in line with inflation – would add a further £2.7billion to the wage bill.

It came as a growing number of professions threatened to copy the walkouts by rail staff. The National Education Union warned that industrial action could see up to three-quarters of staff walk out. It will ballot members during the autumn term if they are not given a pay rise that matches inflation.

The National Union of Schoolmasters/ Union of Women Teachers also plans to ballot members for industrial action if staff are not given a 12 per cent pay rise.

Barristers in England and Wales yesterday announced that they would walk out from next Monday in a strike over pay that could bring the courts to a halt.

The BMA said earlier this month it will consider a strike ballot unless junior doctors receive 22 per cent by the end of the year. The Royal College of Nursing said it would consider action if it does not agree with the Government’s proposed pay increase, which is expected in the coming weeks following recommendations by the NHS Pay Review Body.

Christina Mcanea, general secretary of Unison, warned that ministers were “risking a potential dispute” if the NHS pay review offer falls short. She has called for a rise in line with inflation.

The union demands could see an increase for the 1.2 million staff covered by the pay review, as well as more than 60,000 junior doctors.

If based on a level of inflation at 11 per cent, it would see an increase of £7,653 on the average junior doctor salary of £34,790, £5,341 for the average nurse on £33,384 and a £3,080 increase for NHS workers on £28,000.

If the Government agreed to the demands, it would wipe out a significant proportion of the £12 billion raised by the 1.25 percentage point increase in National Insurance said to be essential to fund the NHS and social care in the wake of the pandemic.

Sir Christopher Chope, who voted against the NI increase, said the demands showed why MPS should not have passed the rise. “The tax rise was justified on the basis that it was needed for social care,” he said. “And where do these demands leave the social care sector?

“The sector is largely independent contractors and they are in a much weaker bargaining position. Those of us who voted against the hike could see that it would never go to social care.

“The question is, what can the Government do to defend the people against this blackmail? I hope that the Government is thinking about the possibility of emergency legislation.”

The Telegraph understands that none of the unions will begin balloting members until after they have seen pay offers and consulted members. Union sources said any action would be unlikely to take place until early next year.

A Department of Health and Social Care spokesperson said: “NHS staff received a 3 per cent pay rise last year, increasing nurses’ pay by £1,000 on average, despite a public sector pay freeze, and we are giving NHS workers another pay rise this year.

“We will carefully consider the recommendations from the independent pay review bodies.”