NHS staff on Agenda for Change contracts are set to receive a 5.5% pay rise after Chancellor Rachel Reeves accepted the recommendations of the NHS Pay Review Body (PRB), following months of delays. MiP welcomed the above-inflation award—which has been endorsed by members—as “a notable shift” and a “good starting point” for future negotiations.

The rise will be backdated to April 2024 and is expected in pay packets in October. Unsocial hours payments and the thresholds for Higher Cost Area Supplements will also be increased by 5.5%. Pension contribution tiers have already been uplifted by 6.7%, meaning staff should not be pushed into a higher contribution tier once the award is paid.

Commenting on the award, MiP chief executive Jon Restell said: “The NHS needs to be able to recruit and retain the workforce required if it’s to bring down waiting lists and improve patient care. Fair pay is an integral part of ensuring the NHS remains an attractive place to work.

“Although this year’s award does not make up for the many years of below-inflation awards, it marks a notable shift and forms a good starting point for future awards,” he added.

In her Commons statement at the end of July, Reeves said the Department for Health and Social Care will be expected to fund a third of the award out of existing budgets, with the remaining cash coming from the Treasury. The government will also consider options for opening the public sector pay process earlier in future years, the Chancellor said.

In an online consultation, MiP and UNISON members voted in favour of accepting the award and focusing efforts on the 2025 pay round.

“It took too long to get here, with staff waiting six months from when they were due the award to it being paid,” said Restell. “We still support reforming the pay process to ensure future pay delays are kept to a minimum.”

He added: “There’s still work to be done on pay progression, the pay setting process and the shorter working week, all of which MiP and UNISON will continue to campaign for as we look ahead to the 2025 pay round.”

Although the PRB’s report covers Wales and Northern Ireland as well as England, at the time of writing, only the UK Government had formally accepted the recommendations. The Welsh and Northern Irish governments are expected to accept the 5.5% award, and MiP will update members in those nations once the governments have responded.

The PRB’s remit does not cover Scotland, where the Scottish Government negotiate directly with staff and unions on NHS pay. An offer in line with the PRB’s recommendation of 5.5% has been made and MiP and UNISON are currently consulting members in Scotland.