The government’s recent announcement of a below-inflation pay rise for some NHS staff has received widespread criticism from employees, unions and industry leaders alike. Despite the Pay Review Body’s recommendation to reward all NHS staff with a 1% rise, health secretary Jeremy Hunt revealed that more than 600,000 employees (more than 50% of NHS staff) will not receive the rise in remuneration. This is because they are already receiving a “progression pay” rise, which automatically increases in line with service.

With inflation running at 2% (as measured by the Consumer Price Index), even the modest 1% rise will be a pay cut in real terms. Further fuelling the fire is news that all NHS staff in Scotland will receive the increase recommended by the pay review body, even if they receive progression pay.

In addition, around 400 very senior NHS managers who do not receive progression pay will miss out on the pay rise all together. The official ministerial statement from the Prime Minister stated: “Whilst we are mindful of the need to ensure that we are able to recruit, retain and motivate staff with the right skills and experience, it is important that senior public servants continue to show leadership in the exercise of pay restraint.”

There is one small silver lining to not receiving a pay rise – doctors holding ‘fixed protection’ on their pensions’ savings will hold onto the protection for longer (although it is still likely to be ineffective over the course of the whole tax year). Fixed protection ‘14, which restores a lifetime allowance of £1,500,000, can be negated if you remain an active member of the NHS pension and your benefits go up by more than inflation, or you contribute to a personal pension.

However, in a further blow to senior doctors, NHS pension contributions will be increased from next month. For doctors with pensionable pay from £70,631 to £111,376, the contribution rate will increase from 12.3% to 13.5% and those with an income of £111,376 or higher will see an increase from 13.5% to 14.5%.