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What in essence is the pay deal?
The pay reform package is designed to ensure fair pay and
conditions of service for NHS staff, and over time to lead
to improved career opportunities and greater rewards for those
who take on more demanding roles.
The deal will give a 10 per cent pay increase over three
years for all NHS staff.
How important is this new pay system?
Provided this package is ratified by NHS staff organisations,
this will represent the biggest and most radical pay reform
implemented in modern British industrial relations history.
It will change the way over one million employees are paid,
and bring to an end a divisive and antiquated NHS pay system
which has its roots in pay systems dating back to the First
World War.
Who has agreed the new package?
Negotiators representing the four UK Health Departments,
NHS employers and 17 NHS staff organisations have successfully
concluded talks on the package of pay modernisation proposals,
which is now going to union executives and members for approval.
So the unions haven't accepted it?
Agreement has been reached between the UK health departments
and the staff side negotiating team. Final ratification of
the deal will be subject to internal staff side consultation.
What does the package include?
The reform package includes:
- Basic pay set solely on the basis of job weight as determined
by a new NHS job evaluation scheme;
- Development and appraisal for all staff with pay progression
linked to the demonstration of applied skills and knowledge;
- Harmonisation of hours, leave and other conditions of
service which currently vary widely between staff groups;
- A clearer and more consistent system of rewarding staff
who work flexibly outside normal hours;
- Flexibility for recruitment and retention premia on top
of basic pay.
How will it work?
Staff will be placed in one of 8 pay bands on the basis of
their knowledge, responsibility, skills and effort rather
than simply on the basis of job title or occupation. They
will receive annual development reviews incorporating appraisal
and a personal development plan. Their pay will increase in
annual steps from minimum to maximum in their pay band as
now, except that there will be two "gateways" where
progression will depend on demonstration of the applied knowledge
and skills needed for that job.
NHS staff will be paid fixed percentage enhancements for
the overall amount of work they agree to do outside normal
hours. They will also enjoy the same harmonised conditions
of service (such as hours, leave etc) irrespective of job
title or occupation.
Most existing allowances will go (and the money reinvested
in basic pay), but there will be a single new system to allow
extra pay to be given to specific groups where this is necessary
for recruitment and retention.
How will it differ from the present pay system?
The biggest difference for NHS staff is that basic pay will
depend solely on job weight, not job title or occupation.
This will ensure that staff who take on significantly more
knowledge, skills or responsibility will be paid more without
artificial ceilings imposed by occupation or job title.
The biggest difference for NHS employers is that in future
there will be no artificial constraints imposed by national
grading definitions. They can design any role they want provided
they set pay fairly on the basis of job weight.
When will it all come into play?
If the package is ratified, the first NHS staff will move
to the new system in 12 'early implementer' sites this June.
All staff will be able to join the new system from October
2004, though staff on local contracts will have a choice whether
they wish to do so.
Will the package be reviewed following consultation?
No. Consultation is on the basis of the package as a whole.
It will not be renegotiated.
Will this be paid for by efficiency savings?
The reform package will not result in any job losses, or
a reduction in services. Indeed it is designed to help expand
the NHS workforce. However it will support fundamental reform
in the way the NHS works which will reduce the cost of expanding
capacity, and in that sense will be self financing. The agreement
is consistent with the resources set aside for pay modernisation
in the 2002 Spending Review.
Will staff have to work harder?
NHS staff already work hard, and this deal does not depend
on staff working harder still. It will, however, support a
major programme of changes in the way the NHS works, which
will help increase capacity and improve patient care.
Who does the package apply to?
If ratified, the package will apply to all staff directly
employed by NHS organisations in the UK except doctors, dentists
and some very senior managers at board level or equivalent.
This includes staff employed by health authorities (including
special health authorities), NHS trusts and primary care trusts
(PCTs), or their equivalents in other countries.
What is the job evaluation scheme?
Job evaluation is a means of fairly rewarding people by measuring
their job related skills, knowledge, and responsibilities.
A single NHS job evaluation scheme has been developed and
will be used to underpin the new NHS pay system to help deliver
equal pay for work of equal value.
What is the NHS Knowledge and Skills Framework ?
The purpose of this NHS Knowledge and Skills Framework (KSF)
is to provide a means of recognising the skills and knowledge,
which a person needs to apply to be effective in a particular
NHS post. The framework will make better links between education
and development and career and pay progression.
What about staff on local contracts?
Staff on national contracts, and other contracts that incorporate
national agreements on pay and conditions of service, will
transfer to the new system automatically. Staff on local contracts
will be offered the new terms, but have a legal right to retain
their existing contract if they wish to do so.
Why are there early implementer trusts and what will they
do?
The early implementer trusts will identify best practice
in implementing the new system and using the new system to
support service modernisation. This is a very radical reform
and all the parties to the talks have agreed that we should
use early implementers to get it right before the system is
rolled out nationally.
Will the new pay system be fully funded?
Yes, full funding for national roll-out will be included
in NHSS allocations for 2004/05 and 2005/06.
Will staff in national roll out have their pay backdated?
No. The nature of the reforms means that it would be very
difficult to calculate what would have happened had people
been on the new system 18 months earlier. It would also break
the link between pay reform and service modernisation.
Will you have to conduct one million job evaluations?
No. Most staff will assimilate to the new system on the basis
of nationally agreed evaluations of standard NHS jobs. "Job
profiles" are
expected to cover the vast majority of staff. Individuals
whose jobs do not fit these profiles will however have to
be evaluated locally. The job evaluation handbook is now available
on the website at the pay modernisation website
Where can I get further information on the new pay system?
Full information on the new pay system, including the Draft
Agreement, the first edition of the Job Evaluation Handbook
and other agreed documents are available on the Pay Modernisation
web site at pay modernisation website
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