Overview

• Independent pay review bodies recommended a 3% pay rise for NHS staff and 4% for teachers, exceeding the government's budgeted 2.8%.
• Unions have threatened strikes if the government does not meet or exceed the review bodies' recommendations.
• The Treasury confirmed no additional funding will be allocated to cover pay rises beyond departmental budgets, citing fiscal constraints.
• Last year, the government fully funded recommended pay increases of 5.5%, ending widespread industrial action—a precedent unions are leveraging in negotiations.
• Economists estimate that meeting the recommended pay rises for schools and hospitals could cost the government an additional £1.1 billion.