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PAY CAP SCRAPPED

NHS pay cap lifted as Jeremy Hunt announces rise of three per cent for doctors and nurses

The Health Secretary told the Commons ministers accepted the one per cent cap was no longer 'sustainable', hinting at above inflation pay rises next year

JEREMY Hunt yesterday signalled a three per cent pay rise for all doctors and nurses as he declared the seven year NHS pay cap has finally been ditched.

Questioned by Labour MPs the Health Secretary told the Commons: “I can give you good news – the pay cap has been scrapped.”

 Jeremy Hunt has signalled a three per cent pay rise for all doctors and nurses
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Jeremy Hunt has signalled a three per cent pay rise for all doctors and nursesCredit: Alamy Live News

He said ministers had accepted the one per cent cap was no longer “sustainable”, hinting at above inflation pay rises next year.

He added: “We recognise it wasn’t sustainable to carry on with the one per cent going forward and that’s why next year we’ve been given the leeway to have more flexible negotiations.”

But he was unable to rule out cuts to NHS services elsewhere to pay for the rise.

It followed a Government announcement last month that police and prison officers would benefit from the removal of their pay cap.

 Unions have welcomed the Health Secretary’s comments but are calling for a 'proper' pay hike for workers
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Unions have welcomed the Health Secretary’s comments but are calling for a 'proper' pay hike for workersCredit: Getty - Contributor

In September Downing Street announced a 1.7 per cent pay rise for prison guards for 2017-2018 and a two per cent deal for police officers.

Treasury Chief Secretary Liz Truss has already hinted teachers could have their cap lifted next year.

In a letter to pay review bodies she said the Government “recognises that in some parts of the public sector, particularly in areas of skill shortage, more flexibility may be required”.

Chancellor Philip Hammond has previously refused to bend on the removal of the cap, estimated to cost up to £6billion.

Unions last night welcomed the Health Secretary’s comments but called for a “proper” pay hike for workers.

 Chancellor Philip Hammond has previously refused to bend on the removal of the cap, estimated to cost up to £6billion
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Chancellor Philip Hammond has previously refused to bend on the removal of the cap, estimated to cost up to £6billionCredit: Getty Images - Getty

UNISON general secretary Dave Prentis said: “Scrapping the pay cap is the right thing to do, but it’s only meaningful if workers receive proper pay rises.

“The government can’t cherry pick lifting the cap for health workers. This cap has to be scrapped, and replaced with decent pay rises, for all public service workers.”

Kevin Brandstatter of the GMB union said: “If there is no new money then it’s a con trick to claim that the pay cap has ended.

“Without new funding, ‘productivity improvements’ just looks like code for cuts to jobs and services.

“Staff are struggling to cope as it is. The NHS is in a desperate state as demand spirals and jobs losses could push it over the edge.”

And Shadow Health Secretary Jon Ashworth added: “It looks like hospitals will be forced to cut other services to find the funds.

“Jeremy Hunt is trying to face both ways on NHS pay and it just means even more uncertainty.”

 The Government insists the pay rise 'needs to be affordable'
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The Government insists the pay rise 'needs to be affordable'Credit: AFP or licensors

In a bid to hold the official Government line on the pay cap, a spokesman for No10 said last night: “Jeremy Hunt was merely reiterating the position of Government that was set out in September.

“We have stated there should be more flexibility on pay but as we have said,  it needs to be affordable.”

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