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. What makes a good Holyrood 2026 manifesto?

    IPPR Scotland sets out five key tests

  2. Turning energy support into investment leverage

    The UK’s energy support risks missing growth by backing high-cost industries instead of those most likely to invest.
  3. Aerial view of the Borders General Hospital on the edge of the Scottish Borders town of Melrose

    More for less? Employment, productivity and reform in Scottish public services

    Excellent public services should be foundational to a flourishing society.