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Jeremy Hunt announces NHS pay cap has been 'scrapped' but doesn't reveal if awards will match rising inflation Jeremy Hunt announces NHS pay cap has been 'scrapped' but doesn't reveal if awards will match rising inflation
(about 1 hour later)
Jeremy Hunt has confirmed the NHS pay cap has been “scrapped”, but without revealing whether staff will get awards to match rising inflation.Jeremy Hunt has confirmed the NHS pay cap has been “scrapped”, but without revealing whether staff will get awards to match rising inflation.
The Health Secretary became the first Cabinet minister to use the word, after Theresa May said only that “flexibility” would be allowed from next year. The Health Secretary became the first cabinet minister to use the word, after Theresa May said only that “flexibility” would be allowed from next year.
However, Mr Hunt did not say whether he expected future pay awards to be at or above inflation – now running at almost three per cent. However, Mr Hunt did not say whether he expected future pay awards to be at or above inflation – now running at almost 3 per cent.
And, asked whether the NHS would be “fully funded” by the Treasury for higher pay, he alarmed Labour MPs by replying: “That is something I can’t answer right now." And, asked whether the NHS would be “fully funded” by the Treasury for higher pay, he alarmed Labour MPs by replying: “That is something I can’t answer right now.”
The Chancellor was demanding “productivity improvements” that would have to be “agreed at the same time”, Mr Hunt told MPs.The Chancellor was demanding “productivity improvements” that would have to be “agreed at the same time”, Mr Hunt told MPs.
When the pay cap was lifted for police and prison staff last month, the awards fell well short of inflation – and organisations were ordered to find the cash from their own resources. When the pay cap was lifted for police and prison staff last month, the awards fell well short of inflation – and organisations were ordered to find the cash from their own resources.
During health questions in the Commons, Mr Hunt claimed: “Without pay restraint, we wouldn't have 11,300 more doctors in the NHS, 11,300 more nurses in our wards. During health questions in the Commons, Mr Hunt claimed: “Without pay restraint, we wouldn’t have 11,300 more doctors in the NHS, 11,300 more nurses in our wards.
“But you will be aware that we recognise it wasn't sustainable to carry on with the 1 per cent going forward and that's why next year we've been given the leeway to have more flexible negotiations." “But you will be aware that we recognise it wasn’t sustainable to carry on with the 1 per cent going forward and that’s why next year we’ve been given the leeway to have more flexible negotiations.”
Questioned by Labour MPs, the Health Secretary added: “I can give you good news - the pay cap has been scrapped." Questioned by Labour MPs, the Health Secretary added: “I can give you good news – the pay cap has been scrapped.”
The possibility that the NHS will not receive extra funding to pay staff more will alarm health service leaders, already warning of a growing funding gap running to many billions.The possibility that the NHS will not receive extra funding to pay staff more will alarm health service leaders, already warning of a growing funding gap running to many billions.
On whether the Treasury would provide the money, Mr Hunt said: “The fact is that we have that flexibility – and I hope we can get that win-win as a result.”On whether the Treasury would provide the money, Mr Hunt said: “The fact is that we have that flexibility – and I hope we can get that win-win as a result.”