Nurses in England face £1,600 real-terms hit if NHS pay rises 3%

theguardian.com:

Nurses are facing a £1,600 real-terms wage cut under plans being considered by the government for this year’s pay rise, with ministers expected to offer an increase of just 3% for NHS staff in England despite the soaring cost of living.

Union leaders have warned that pushing through a below-inflation settlement would leave staff who served on the pandemic frontline facing “huge real terms pay cuts”.

As ministers prepare to announce a raft of public sector pay deals over coming weeks, the TUC said nurses would suffer among the biggest losses from wages failing to keep pace with the rising cost of living.

NHS workers received a 3% pay deal in 2021, up from an initial 1% offered by Boris Johnson’s government after a fierce public backlash. Ministers have asked the NHS pay review body to recommend asimilar award for this year, with the increase to be backdated to April 2022.

However, inflation has soared to 9% – the highest level since the early 1980s – as Russia’s war in Ukraine exacerbates soaring wholesale energy prices. The Bank of England expects inflation to peak close to 10% later this year.

Average wage growth across the UK economy has picked up in recent months amid shortages of workers in several sectors. However, the increase is failing to keep pace with outgoings as households brace for the worst squeeze on living standards since modern records began in the 1950s. Public sector workers have faced weaker pay growth than average amid government restraint.

Should ministers push through a 3% settlement for NHS workers, the TUC said nurses and paramedics would suffer a £2,000 cut in the inflation-adjusted value of their pay. For maternity care assistants it would represent a real-terms cut of £1,200 and for hospital porters