FAQs: 2007/08 pay award

Frequently asked questions regarding the 2007/08 pay award and pay review body process.

Q. What are the 2007/08 pay awards?

Q. What is NHS Employers' reaction to the pay awards?

Q. What are the background issues to this year's pay award?

Q. What is happening for the Agenda for Change groups not covered by the pay review body?

Q. How will the flat-rate payment for doctors be staged?

Q. What is the position with GPs and the GP contract?

Q. How will the award be applied to managers on the very senior managers' pay arrangements?

Q. Is there thinking going on about the future of pay more generally?

Q. If I have any further queries what should I do?

Q. What are the 2007/08 pay awards?

A. The Chancellor has decided that pay rises across the public sector should be limited to within the Government’s CPI inflation target of 2 per cent.

The recommendations from the pay review bodies were as follows:

• The Nurses and Other Health Professionals Review Body (NOHPRB):
  2.5 per cent on all pay points and on the High Cost Area Allowances (HCAS)
• The Doctors and Dentists Review Body (DDRB):
  - A flat rate increase of £1000 on all pay points for all hospital consultants, staff and associate specialists and salaried dentists
  - Hospital doctors and dentists in training to receive a flat rate increase of £650 on all pay points
  - General dental practitioners to receive 2 per cent
  - General medical practitioners to receive 0 per cent

The Government has accepted the recommendations of the review bodies but will stage the payment of the awards in order to meet the Chancellor’s requirement to contain pay rises within the inflation target during 2007/08.

This means that:

• The pay award for nurses and all other health professionals covered by the NOHPRB will be:
  - 1.5 per cent increase on all pay points and high cost area allowances from 1 April 2007
  - The remainder of the 2.5 per cent uplift on all pay points and high cost area allowances from 1 November 2007 
• For hospital consultants, staff and associate specialist doctors and dentists, and primary care salaried dentists:
  - 1.5 per cent increase on all pay points or the designated flat rate payment of £1000, which ever is the lesser, from 1 April 2007
  - the balance, where applicable, up to £1000 from 1 November 2007
• For hospital doctors and dentists in training:
  - 1.5 per cent increase on all pay points or the designated flat rate of £650, which ever is the lesser, from 1 April 2007
  - The balance, where applicable, up to £650 from 1 November 2007
• For general dental practitioners, the review body recommends a 3 per cent increase in gross earnings base, which the review body estimates will allow for an increase in dentists’ earnings of 2 per cent after expenses
• For general medical practitioners no uplift to the global sum
  

NHS Employers will be making the same staged offer as awarded to NOHPRB staff to Agenda for Change staff not within the review body remit but covered by the Pay Negotiating Council (PNC), for example administrative, clerical, ancillary, and maintenance staff.
The Secretary of State is also proposing to increase very senior managers’ pay in line with the average percentage increase given to consultants.

Staff who have had their award staged will have their pay uplifted by the full amount recommended by the review bodies from 1 November.

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Q. What is NHS Employers' reaction to the pay awards?

A. In our evidence to the review bodies, based on the views expressed by local employers in our original pay survey last year, in subsequent meetings and by our Policy Board, was about the need for pay awards to be affordable for the service. A 2.5 per cent award for the large bulk of staff would have presented many employers with financial challenges, and staging eases this to some extent. We recognise that many staff will be disappointed with the outcomes.

A further clear message from employers was that, unless there was very good reason to the contrary, it was desirable to have the same awards across all staff groups. Differential awards are unsatisfactory on equity grounds or for supporting team working. We would, therefore, have preferred to see the review bodies take a consistent approach.

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Q. What are the background issues to this year's pay award?

• Approximately 80 per cent of staff on Agenda for Change will receive an increment worth around 3 per cent in addition to the inflationary uplift 
• Over the five years to 2005-06 (the last year for which we have comparable
  data) NHS pay has risen on average 32 per cent compared  to 24 per cent for the whole public sector 
• At national level NHS Employers and the Department of Health aim to work with staff organisations to find ways to better manage pay and conditions issues. This is going to be particularly important for the NHS as we enter a period where we are unlikely to continue to receive the growth in funding of previous years but expectations on the service will continue to rise
• The NHS continues to provide a good overall package of terms and conditions for staff in terms of pay, pensions, leave etc and NHS organisations remain committed to maintaining these provisions.
  

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Q. What is happening for the Agenda for Change groups not covered by the pay review body?

A.  NHS Employers will be making the same offer awarded to NOHPRB staff to Agenda for Chang staff covered by the Pay Negotiating Council (PNC), for example administrative, clerical, ancillary, and maintenance staff.

We were not able to make a formal pay offer to the PNC until we knew the outcome of the review body recommendations because of the integral nature of the Agenda for Change pay system. In line with the equal pay principles of Agenda for Change, staff on the same pay point must receive the same increase.

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Q. How will the flat-rate payment for doctors be staged?

The pay award for consultants can be paid in full from 1 April 2007.

For doctors in training:

• A 1.5 per cent increase on all pay points, or the designated flat rate payment of £650, which ever is the lesser from 1 April 2007
• The balance, where applicable, up to £650 from 1 November 2007

For staff and associate specialist doctors:

• A 1.5 per cent increase on all pay points or the designated flat rate payment of £1000, which ever is the lesser, from 1 April 2007
• The balance, where applicable, up £1000 from 1 November 2007

Whilst this might seem complex and some doctors would only receive a very small additional payment in November we believe this is the only method that both meets the requirements of the pay limits and is fair to doctors.

NHS Employers pay circular will set out the rates payable from 1 April 2007 and a further pay circular will be issued detailing the rates payable from 1 November 2007.

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Q. What is the position with GPs and the GP contract?

A. NHS Employers has always contended that the GMS contract is a contract for services and not for GP pay. We were disappointed that GPC negotiators were not able to reach agreement with us when we were discussing a reasonable offer which included substantial uplift to the contract in line with our agreed principles “better for patients, fair to the profession, good value for tax payers”.  Instead they sought a recommendation for uplift from the independent Doctors and Dentists Review Body.  Our package offered significant investment in General Medical Services (GMS) in return for improvements and efficiencies that would have resulted in a reasonable uplift for all GMS practices.  Unfortunately the delay introduced by seeking DDRB’s input into the contractual process now means that some issues cannot now be addressed for 2007/08. In light of the review body’s recommendations, which are accepted by the government, that GP pay should not rise next year, we will need to consider with DH and the Devolved Administrations what that means for the contract.

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Q. How will the award be applied to managers on the very senior managers' pay arrangements?

A. The Secretary of State has proposed to increase very senior managers pay in line with the average percentage increase given to consultants.  Further information on how this should be applied will be provided once we have clarified this.

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Q. Is there thinking going on about the future of pay more generally?

A. NHS Employers is keen to encourage debate and thinking amongst employers about the future direction of pay and the current pay systems. We have had a seminar for representatives from the service entitled “Where next on pay?” and the Policy Board will be considering the issue in April.

We will also discuss thinking on future pay policy with the unions and the Department of Health. This will be particularly important for the NHS as we enter a period where we are unlikely to continue to receive the growth in funding of previous years but expectations on the service will continue to rise.

We would welcome any thoughts employers may have on these issues.

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Q. If I have any further queries what should I do?

A. Further queries relating to Agenda for Change should be directed to AgendaforChange@nhsemployers.org.  Queries relating to hospital doctors and dentists should be directed to doctorsanddentists@nhsemployers.org and we will respond to them as soon as possible.

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