« TUC supports calls for wages for talent show finalists | Main | Feedback as a core competency for managers »

Every 1% on pay = 10,000 jobs cut, warns senior NHS executive

"[E]very 1% on pay is 10,000 potential job cuts" (external website) in the NHS, according to a Health Service Journal interview with University College London Hospitals Foundation Trust chief executive Sir Robert Naylor.

This rough equation represents one of the starkest warnings so far on the potential impact of public spending cuts on jobs and reward in the NHS over the coming years.

Sir Robert Naylor used the interview to call for a pay freeze for NHS staff to come into effect from April 2011, once the final year of the current three-year NHS pay agreement (subscription required) has been honoured. He says:

It's unrealistic for staff and the public to think there will be pay rises for staff, given the economic circumstances. If the public sector isn't going to be funded in accordance with inflation - as seems unlikely - then the new government next spring will have to decide whether it can afford a pay a rise for staff, bearing in mind every 1 per cent on pay is 10,000 potential job cuts.

(Thanks to my colleague Mike Berry for flagging up this story via Twitter).

 

Michael Carty | |

TrackBack

TrackBack URL for this entry:
http://www.xperthr.co.uk/cgi-bin/mt/mt-tb.cgi/64930

Listed below are links to weblogs that reference Every 1% on pay = 10,000 jobs cut, warns senior NHS executive:

» Public sector pay: storm clouds gather for 2010 from XpertHR - Employment Intelligence
Things look set to turn distinctly stormy with regard to public sector pay over the coming year, with workers in the sector likely to see their 2010 pay awards radically constrained by the recession and by the Government's need to make radical public s... [Read More]

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

What is XpertHR?

XpertHR is the UK's most cost-effective HR online information source for compliance, good practice and benchmarking.

Subscribe to the blog feed

Subscribe to the Employment Intelligence feed   [What is this?]

Email this page or add it to a social network site

Other XpertHR services

Blog rating

Archives

Tag cloud

latest from XpertHR

pick of the web