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Osborne announces 1% public sector pay rise

The chancellor has announced that public sector workers, including GPs, will continue to receive a 1% pay rise over each of the next four years, although the BMA has said this amounts to a pay cut when inflation is taken into account.

In his Budget today, George Osborne said that there is a ‘simple trade-off between pay and jobs in many public services’ and, to make them affordable, he would continue to award below-inflation rises.

He also said that the NHS was the Government’s ‘priority’, and would increase NHS funding by a further £8bn in line with the Five Year Forward View set out by NHS England chief executive Simon Stevens.

The announcement follows pay rises of 1% since 2013, which itself followed two years of pay freezes for all public sector workers.

As a result, the Government’s evidence to the DDRB will advise them to award a 1% pay rise to GPs.

However, Pulse has revealed that previous DDRB pay awards intended to give GPs a 1% pay rise have in reality left them facing a pay decrease.

Mr Osborne said today: ‘There is a simple trade-off between pay and jobs in many public services.

‘We know there has been a period of pay restraint, but we said last autumn that we need to find commensurate savings in this Parliament so in order to ensure we have public services we can afford, and we can protect more jobs, we will continue recent public sector pay awards, with a rise of 1% over the next four years.’

He added that the Government’s priority was the NHS, and they planned to ‘fully fund’ the Stevens plan.

Mr Osborne said: ‘That plan requires very challenging efficiency savings across the health service, which must be found. It also requires additional Government funding. Out balanced approach means I can confirm today that the NHS will receive, in addition to the £2bn we have already received this year, a further £8bn.

‘That’s a further £10bn a year in real-terms by 2020. It is proof that you can only have a strong seven-day NHS if you have a strong economy, and it is proof that the NHS is only truly strong in Conservative hands.’

Dr Mark Porter, BMA chair, said: ‘The health secretary himself has admitted that continued pay restraint is unsustainable and the Chancellor’s cynical disregard for NHS staff is shown by this announcement of a pay freeze for another four years at a time when he knows that inflation will rise above that.’

Readers' comments (18)

  • David Barrett

    Quietly does it, but "The Stevens Plan" calls for an ambitious £22Billion in yet more efficiency savings !

    Ozzy & Co, please listen carefully ...."There is no more blood to get out of the NHS stone"

    1% pay rise for GPs after 6 years defunding primary care... Like really, even if we see those peanuts via DDRB et al trickery, I somehow doubt this will be any "factor" at all to those GPs exercising choices - retiring early, emigating, locuming etc

    Or those with NO choices in having to give contracts back to Area Teams, those trapped in long-term practice leases, burning out because can't recruit new GPs to work at their practice etc etc

    It's a false economy to let primary care remain on an EOL Plan. We will have to refer much much more into Hospital. Prevention can be a luxury when "fire-fighting" like some practices are.

    7 day access to "your GP" on a "shoestring budget" plus 1%. So £100 given us to provide a service for 5 days means £20 per day to work with, £101 to work 7 days means £14 and 43pence per day to work with....it's not rocket science! More undoable demands!

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  • This is not 1% above the rate of RPI inflation . It is a pay cut in real terms . Just let's be clear on this .

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  • 1% per year or 0.25% per year - or am I just cynical.....?

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  • 1% pay restraint.,,,
    obviously does not apply to MPs and ministers.

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  • The way the government had allowed/engineered the press and the public to believe that we are all just moaning greedy to be seen to give us anything more would be detrimental to their political ambitions. Any funding into primary care is now seen to be GP pay. They have painted themselves into a corner and we are paying the price.

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  • Vinci Ho

    His job is easy. 1% every year for next five. Take it or leave it. DDRB virtually does not need to exist . Why not just sacking all of it , another measure of effiency saving . By the way , what is the pay rise for ministers , remind me please?

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  • What is last years rate of inflation RPI ? Does anyone really know ?

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  • Sorry - is this one of the public sector workers who has just taken a 10% pay increase? I didn't see any shortage of prospective MPs at the election; no seat left untaken because unable to fill the post. Meanwhile the NHS staffing crisis continues and he tells us it's a trade-off between pay and jobs.....it should be a case of prioritising to ensure quality health care.

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  • From National stats RPI from 2010 to 2014 - is 18.5 % . Anyone for a 17.5 % pay cut ?

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  • Count your blessings you ungrateful lot.It's better than 0%.

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