NHS Pay Review Body - assets.publishing.service.gov.uk

1 NHS Pay Review BodyNHS Pay Review BodyThirtieth Report 2017 Chair: Jerry CopeCm 9440 NHS Pay Review BodyThirtieth Report 2017 Chair: Jerry CopePresented to Parliament by the Prime Minister and Secretary of State for Health by Command of Her MajestyPresented to the National Assembly for Wales by the First Minister and the Cabinet Secretary for Health, Well-being and SportPresented to the Northern Ireland Assembly by the Minister for Health1 March 2017Cm 94401 In the absence of a Northern Ireland Executive at the time of publication, this report was presented to the Permanent Secretary of the Department of Health in Northern Ireland.

2 Crown copyright 2017 This publication is licensed under the terms of the Open Government Licence except where otherwise stated. To view this licence, visit or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: we have identified any third party copyright information you will need to obtain permission from the copyright holders publication is available at Any enquiries regarding this publication should be sent to us at:Office of Manpower EconomicsFleetbank House2-6 Salisbury SquareLondonEC4Y can download this publication from ISBN 9781474141673 Web ISBN 9781474141680ID 06031701 03/17 Printed on paper containing 75% recycled fibre content in the UK by the Williams Lea Group on behalf of the Controller of Her Majesty s Stationery OfficeNHS Pay Review BodyThe NHS Pay Review body (NHSPRB) is independent.

3 Its role is to make recommendations to the Prime Minister, the Secretary of State for Health, the First Minister and the Cabinet Secretary for Health and Sport in Scotland, the First Minister and the Cabinet Secretary for Health, Well-being and Sport in Wales, and the First Minister, Deputy First Minister and Minister for Health in Northern Ireland, on the remuneration of all staff paid under Agenda for Change and employed in the National Health Service (NHS).2In reaching its recommendations, the Review body is to have regard to the following considerations:the need to recruit, retain and motivate suitably able and qualified staff;regional/local variations in labour markets and their effects on the recruitment and retention of staff;the funds available to the Health Departments, as set out in the Government s Departmental Expenditure Limits;the Government s inflation target;the principle of equal pay for work of equal value in the NHS.

4 The overall strategy that the NHS should place patients at the heart of all it does and the mechanisms by which that is to be Review body may also be asked to consider other specific Review body is also required to take careful account of the economic and other evidence submitted by the Government, Trades Unions, representatives of NHS employers and Review body should take account of the legal obligations on the NHS, including anti-discrimination legislation regarding age, gender, race, sexual orientation, religion and belief, and and recommendations should be submitted jointly to the Prime Minister, the Secretary of State for Health, the First Minister and the Cabinet Secretary for Health and Sport in Scotland, the First Minister and the Cabinet Secretary for Health, Wellbeing and Sport in Wales, and the First Minister, Deputy First Minister and Minister for Health in Northern of the Review body are.

5 Jerry Cope (Chair) Bronwen Curtis CBE Patricia Gordon3 Joan Ingram Shamaila Qureshi4 Professor David Ulph CBE Professor Jonathan Wadsworth2 Lorraine ZuletaThe secretariat is provided by the Office of Manpower References to the NHS should be read as including all staff on Agenda for Change in Health and Social Care Trusts in Northern Professor Jonathan Wadsworth was appointed to the NHS Pay Review body in April 2016. Patricia Gordon was appointed to the NHS Pay Review body in November Shamaila Qureshi was unable to take part in consideration of this year s report but remains a full Member of the Review SummaryxiChapter1:Introduction 1 Structure of the reportTwenty-Ninth Report 2016 Remits for this reportOur comments on the remitsParties giving evidenceReview body visits in 20162.

6 The Economy, Labour Market and Pay7 IntroductionThe EconomyEconomic GrowthInflationEmploymentAverage Earnings Growth and Pay SettlementsPublic-Private Sector Earnings DifferentialEvidence from the parties on the economyEarnings of our Remit GroupGraduate earningsEvidence from the parties on the earnings of the Remit GroupTotal RewardMembership of the NHS Pension SchemeEvidence from the parties on Total RewardOur comment on the Economy, Labour Market and Pay3:Affordability, Efficiency and Productivity34 IntroductionEmployed Staff Pay BillProductivity and EfficiencyEvidence from the parties on affordability, efficiency and productivityFunding Pay Awards through the tariffEvidence from the parties on funding pay awards through the tariffService Transformation, including Sustainability and Transformation PlansEvidence from the parties on service transformationOur comment on affordability, efficiency and productivityPage4.

7 Recruitment, Retention and Vacancies52 IntroductionNHS Workforce, Turnover and VacanciesEvidence from the parties on NHS workforce, turnover and vacanciesOur comment on NHS workforce, turnover and vacanciesAgency SpendingEvidence from the parties on agency spendingOur comment on agency spendingHigh Cost Area Supplements (HCAS)Evidence from the parties on High Cost Area SupplementsOur comment on High Cost Area SupplementsRecruitment and Retention Premia (RRP)Evidence from the parties on Recruitment and Retention PremiaOur comment on Recruitment and Retention Premia5:Motivation, Morale and Staff Engagement74 IntroductionNHS Staff SurveysSickness AbsenceAppraisal and the Knowledge and Skills FrameworkEvidence from the parties on motivation, morale and staff engagementEvidence from the parties on specific staff groupsOur comment on motivation, morale and staff engagement6.

8 Workforce Planning, Future Supply and the People Strategy92 IntroductionWorkforce Planning and Future SupplyEvidence from the parties on workforce planning and future supplyOur comment on workforce planning and future supplyParamedicsEvidence received from the parties on paramedicsOur comment on paramedicsApprenticeshipsEvidence from the parties on apprenticeshipsOur comment on apprenticeshipsInternational RecruitmentEvidence received from the parties on international recruitmentOur comment on international recruitmentThe Impact of Pay on SupplyEvidence received from the parties on the impact of pay on supplyOur comment on the impact of

9 Pay on supplyPeople StrategyEvidence from the parties on the people strategy in the NHSOur comment on the people strategy in the NHSviviiPage7:Pay Proposals, Recommendations and Observations121 IntroductionDifferences in pay across the four nations of the UKThe Pay AwardEvidence from the parties on the pay awardPay targetingEvidence received from the parties on pay targetingThe National Living Wage and the Living Wage Foundation WagesEvidence from the parties on living wagesOur comment and recommendationsAppendixA:Remit letters139B:Recommended Agenda for Change Pay Scales with effect from 1 April 2017149C:Composition of our Remit Group152D:The parties website addresses156E:Previous reports of the Review Body157F:Abbreviations used in the report159G.

10 Workforce monitoring data161 List of Tables, Boxes and Figures forecasts, Quarter in the nominal value of the Agenda for Change pay structure by pay point 2010/11 2016 in median gross weekly pay for full-time employees at adult rates, 2014 to 2016, April each year, United annual increase in total earnings of Agenda for Change staff employed in March 2010 and in March 2015 by staff group, adjusting for changes in contracted take home pay for top of band pay points, England, 2011-12 to starting salary for non-medical health degree courses, by region in England, 2014 Hospital and Community Health Service staff paybill and DH total health Medical paybill in Wales and Community Services paybill in in costs of Hospital and Community Health Services non-medical staff pay bill, 2009/10 to 2015/16, and Locum spend in Northern Ireland from 2010/11 to 2015 and Locum spend in Wales from 2012/13 to 2015 Expenditure in Northern Ireland by Staff Expenditure in Wales by Staff of productivity increases in the NHS in 2013 equivalent non-medical staff in NHS by United Kingdom country and broad staff group.