Government launches 2025-26 NHS pay round but delays expected
The government has launched the 2025-26 NHS pay round but has warned that it is still “unlikely” that nurses will receive a pay rise on time next year.
The health and social care secretary, Wes Streeting, wrote to the NHS Pay Review Body (PRB) to formally start the process of gathering evidence to inform its recommendations on pay for nurses and other Agenda for Change staff next year.
“It is not acceptable that our members will receive a delayed pay rise for another consecutive year”
Nicola Ranger
There have been mixed responses from health unions in response to the remit letter.
Some have praised the government for launching the process earlier than it had been last year, while others have criticised the fact that nurse pay will once again be delayed.
In the remit letter, Mr Streeting said next year’s pay award “comes against the backdrop of the challenging financial position” inherited from the former government, including a £22bn hole in the budget.
He confirmed that the government would set out the funds available to the Department of Health and Social Care at the Autumn Budget on 30 October.
He added: “My department will continue to strive to deliver on our manifesto commitment to build an NHS fit for the future, to ensure it is equipped to efficiently deliver the vital, high quality public service we rely on, while ensuring value for money for taxpayers.”
Meanwhile, the letter also reiterated a government pledge to create a PRB process in which pay awards were announced as close as possible to the start of the financial year on 1 April.
It comes as the PRB process has been delivering pay awards around six months late.
Mr Streeting said: “As the chancellor said in her July statement, the government’s intention is to announce pay awards as close to the start of the pay year of 1 April as possible for 2025 to 2026.
“It is unfortunate that, given the knock-on effects from the previous government’s delays to the 2024 to 2025 round, it is unlikely that workforces will receive pay increases by April.
“But by bringing the pay round forward this year, we can more fully reset the timeline in 2026 to 2027.”
Mr Streeting still urged the PRB to deliver recommendations to the government on NHS pay “at the earliest point that allows”.
To support this, he said the government would publish its written evidence to the body “as soon as possible” after the spending review is finalised and the 2025-26 budgets are set.
“I recognise that changing the timeline from recent years will present challenges for NHS PRB, but I am sure you also share the government’s belief in the importance of returning to more timely annual pay processes, so I hope you will understand the necessity of doing so,” he added.
“The union will be pushing to speed up the inefficient, long-winded PRB process through direct talks”
Helga Pile
Responding to the letter, the Royal College of Nursing (RCN) general secretary and chief executive, Professor Nicola Ranger, said the remit letter again called into question the independence of the NHS PRB.
“Our members need to see change – a significant reset in pay that demonstrates their value,” she said.
“In setting limits on the budget available for NHS pay, the government is attempting to override the independence of the PRB process once again.”
Professor Ranger noted that the government had “rightly pledged to restore confidence in the PRB” but that the language used in the letter this week was “being used to undermine it”.
She added: “It is not acceptable that our members will receive a delayed pay rise for another consecutive year.
Nicola Ranger
“Nursing staff want to be part of the solution.
“They will be alarmed by this latest development and our participation cannot now be guaranteed.”
The remit letter comes just days after the RCN announced that its members had rejected the NHS pay award for this year as not being enough.
Two-thirds voted against the 2024-25 deal, which has seen nurses on Agenda for Change contracts awarded a 5.5% pay rise.
Separately, the GMB union, which is still balloting its members on this year’s pay award, welcomed the launch of the 2025-26 pay round.
The union’s national secretary, Rachel Harrison, said: “GMB welcomes today’s PRB remit – the earliest it has been published in a decade.
“It’s a first step towards addressing delayed pay rounds of the past.”
Ms Harrison added that once the GMB 2024-25 pay ballot had concluded, it would consult its members on whether to engage with the NHS PRB this year.
It comes as concerns have been raised in recent years by health unions, who have argued that the PRB is not fit for purpose.
Several unions have had doubts about the independence of the body and, as such, have refused to submit evidence to the NHS PRB process.
Also responding to the remit letter, Unison head of health Helga Pile said kicking off the process now was “in stark contrast to last year” when it began in late December.
However, she also suggested that Unison may continue its boycott of the PRB, noting that it was seeking “direct talks” with the government to negotiate a pay deal.
She said: “The previous Conservative government showed a shocking disrespect for the system that sets pay for more than a million health workers.
“That left staff waiting for months on end while their bills soared.
“Getting the pay award when it’s due in April remains a high priority for staff and the union will be pushing to speed up the inefficient, long-winded PRB process through direct talks.”
