Lifting the cap: The fiscal and economic impact of lifting the NHS pay cap

Article

Workers in the NHS have experienced a seven-year pay squeeze, with a two year pay freeze from 2011/12, followed by pay capped at 1 per cent for the following five years. This has significantly eroded the value of pay in the NHS; pay for a band 5 nurse is £3,214 or 10.1 per cent lower today than pay for the same role in 2010/11.

In this briefing, we examine the fiscal and economic impact of two alternative scenarios for NHS pay over the next two years; increasing pay in line with Consumer Price Index (CPI) inflation, and a ‘catch-up’ rate of increasing NHS pay in line with private sector earnings plus 1 per cent.

Related items

  1. A row of international flags flying in the breeze outside a building in Paris on a sunny day

    Diversifying diplomacy: UK strategy in a fragmenting world

    How the UK might build more durable international partnerships in energy, defence and technology.
  2. A 'To Let' sign outside a row of houses on a residential street, UK

    High housing costs in the private rental sector: The case for action

    45 per cent of all private renters in the UK have unaffordable rents. It's time for the government to act to limit rent increases.
  3. A wide shot of several large commercial vessels, including oil tankers and a survey boat, floating on turquoise water. In the background, an industrial shoreline with numerous smokestacks and refinery infrastructure is visible under a cloudy sky. Concept of global logistics, maritime industry, and international trade.

    Price caps and economic stability: How to manage the Iran war energy shock?

    The Iran war energy shock will impose significant costs on the UK economy, even if the government does not offer a universal support package.