NHS pay offer: real terms cut
New Labour has put an additional £52m on the table in talks over this year’s staggered pay settlement for NHS workers in England.
The move is generating a surprising number of favourable headlines, often implying that it represents something a boost for lowest-paid. But read the small print of what the health secretary is proposing.
Here’s how the Financial Times handles the story this morning:
Alan Johnson tried to buy industrial peace in the National Health Service in England on Thursday by giving low-paid staff and nurses more money.
Hey! Sounds great!
The health secretary is giving back a quarter of the cash the government saved by paying 1m nurses and other staff this year’s increase in two stages.
So he’s keeping the other three-quarters, then?
Still, the miserly gesture will probably be enough to avoid ballots on industrial action from the main nursing unions. Here’s the assessment of Unison lead negotiator Mike Jackson:
"The package on offer is a complex one, and will mean different things to different NHS staff depending on where they live.
"This is still a below-inflation deal for most, but it is the best offer we are likely to achieve through negotiations, and we will be balloting our members over whether they wish to accept it."
In short, Johnson’s ‘generosity’ amounts to a real terms pay cut. That’s not the way a Labour government seemingly so keen to throw tax breaks at venture capitalists should be treating some of the country’s hardest workers.
New Labour has put an additional £52m on the table in talks over this year’s staggered pay settlement for NHS workers in England.
The move is generating a surprising number of favourable headlines, often implying that it represents something a boost for lowest-paid. But read the small print of what the health secretary is proposing.
Here’s how the Financial Times handles the story this morning:
Alan Johnson tried to buy industrial peace in the National Health Service in England on Thursday by giving low-paid staff and nurses more money.
Hey! Sounds great!
The health secretary is giving back a quarter of the cash the government saved by paying 1m nurses and other staff this year’s increase in two stages.
So he’s keeping the other three-quarters, then?
Still, the miserly gesture will probably be enough to avoid ballots on industrial action from the main nursing unions. Here’s the assessment of Unison lead negotiator Mike Jackson:
"The package on offer is a complex one, and will mean different things to different NHS staff depending on where they live.
"This is still a below-inflation deal for most, but it is the best offer we are likely to achieve through negotiations, and we will be balloting our members over whether they wish to accept it."
In short, Johnson’s ‘generosity’ amounts to a real terms pay cut. That’s not the way a Labour government seemingly so keen to throw tax breaks at venture capitalists should be treating some of the country’s hardest workers.

OK, I admit to cheating slightly here. Although I did used to know Peter reasonably well - I even once joined him and his now ex-wife Pat for rather delicious home-cooked Sunday lunch at their house in Putney - I know full well that these days he wouldn't bother returning an old comrade's calls.