Cancer and GP service budgets could be cut for NHS staff pay rise

Cancer and GP budgets may have to be cut to fund staff pay rises, NHS leaders have warned.

Ahead of proposals on NHS staff pay rises from the government, NHS England directors have warned in lieu of additional government funding, any pay rise for staff above 3 per cent may be taken from other healthcare budgets, such as cancer.

The warning also comes as the NHS is set to lose 6,000 jobs from three of its major managing organisations: NHS England, Health Education England and NHS Digital.

NHS staff working at the three national bodies were told on Thursday their jobs are at risk as the organisations seek to cut roles by 30 to 40 per cent.

NHSE chief executive Amanda Pritchar wrote in a letter to NHS England staff: “We need to reduce the size of our organisation, so that we are focused on enabling and supporting change and empowering systems to lead locally. This means being rigorous about the activity our new organisation undertakes. We need to simplify how we work across the new organisation and how we work with the wider NHS.

“As the NHS maintains its recovery from the pandemic, and the economic position across the country is tighter, we also need to continue to ensure our resources are used as effectively and efficiently as possible.”

The letter said based on initial work, by the end of 2024, the organisations will be between 30 and 40 per cent smaller. They will be restricting any external recruitment and will be looking to offer voluntary redundancy schemes from autumn, Ms Pritchard told staff.

NHS leaders also levied a warning on Thursday around NHS pay rise issues, stating that should the government implement a pay raise staff of more than 3 per cent, the health service would be forced to reduce budgets for cancer and primary care.

The government is expected to make its offer for pay rises within the next couple of weeks, however, has made no indication it will provide additional funding to the NHS to support an increase of more than 3 per cent.

Sources have said the government offer is likely to be in the region of 4.5 per cent, which would mean the NHS finding £1.5bn within its budget to fund pay increases.

Patricia Marquis, the Royal College of Nursing’s England director said: “NHS England boss Amanda Pritchard was right to recognise the ‘operational necessity’ of a fair pay rise for nursing. We fully agree that the forthcoming pay rise is integral to the recruitment and retention in nursing and the very viability of the services they work in. The number of people quitting is increasing and that must be addressed.

“After a decade of real terms pay cuts and in the midst of a cost-of-living disaster, this year’s pay award needs to be a big one - 5% above the level of inflation pay award to make people feel valued, prevent more from leaving and keep patients safe. This must be fully funded with additional investment from Government.

“A pay rise of only three per cent will do nothing to stem the tide. The new Health Secretary must rise above the political mayhem engulfing government and indicate his support for nursing with an immediate and substantial pay rise, already three months overdue.”