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Health leaders say government cost of living plan is a ‘sticking plaster’

Health leaders have voiced concern that Chancellor’s cost of living plans are yet another sticking plaster that fail to significantly address the extreme challenges faced by people living on the lowest incomes. 

Health leaders have voiced concern that Chancellor’s cost of living plans are yet another sticking plaster that fail to significantly address the extreme challenges faced by people living on the lowest incomes.

The NHS Confederation said that there is a clear link between poverty and poor health outcomes and whilst the Chancellor’s latest interventions are to be welcomed and will offer some desperately needed help.

Matthew Taylor, chief executive, said: “The long-term impact of the cost-of-living crisis on very low-income households, who we know are facing much greater inflation rates than those on higher wages, will still be profound.

“We already see a stark difference in life expectancy between different parts of our communities, and health leaders are deeply worried that without further action this divergence will grow, which in turn will lead to greater demand for healthcare in the longer term.

“NHS organisations are taking action to support staff as cost-of-living pressures impact on them and their families and this includes offering discounts on public transport, access to financial advice and improved flexibility on working hours.”

He said the government must now urgently consider increasing the pay rates of NHS and other public sector workers to support those staff that need it most, and to ensure that the NHS can continue to be seen as a competitive employer in a challenging labour market.

Increase the pay rates of NHS and other public sector workers

Particular attention also needs to be given to the rates of pay offered in social care, where quick action is needed to recruit and retain staff.

Many of these staff are leaving or considering leaving the NHS for better paid jobs in the private sector with some of the country’s top supermarket chains, high street stores, and the hospitality industry paying at least £10 per hour more than the NHS currently offers as a starting salary for band 2 staff.

NHS organisations are doing all they can to help their staff with the cost-of-living crunch. This includes many NHS organisations setting up their own food bank schemes for staff, offering hot meals for £1 and free meal cards and hardship funds.

However, leaders warn this does not go far enough and the NHS Confederation is now calling on the government to go further and add more to the pay packets of the lowest paid healthcare workers, including porters, medical secretaries, security guards and healthcare assistants.

“Real risk” of a mass exodus of healthcare staff

NHS leaders want to see the Department of Health and Social Care commit to a 4% pay rise for NHS staff on NHS €˜band 2′ terms and conditions of service (TCS) contracts instead of the 3% increase which is expected to be announced and confirmed as early as next month.

Staff on similar salaries and in similar roles in primary care, including clinical staff such as general practice nurses, and non-clinical staff such as receptionists, whilst not on NHS TCS, should also benefit from the rise.

Any increase would need to be fully funded by the Government and could not be absorbed by employers within the current NHS funding settlement which itself has already been heavily eroded by soaring inflation.

Around 60,000 staff are on the lowest NHS pay point earning £18,870 a year. A targeted 4% pay rise for these staff means they would take home around £500 a year extra after tax and this would add an extra £15-20m to the NHS pay bill above that already planned.

He added: “Committing to giving more money to the NHS’ lowest paid workers is the right thing to do as inflation spirals and living costs mount.

“Without a pay rise which at least matches what some parts of the private sector are offering, we are at real risk of a mass exodus of healthcare staff on the lowest pay who are quitting the NHS to search out jobs in better paid sectors including supermarkets, pubs and high street shops. Staff leaving the NHS at a time when they are most needed will also jeopardise the gains the health service is making in clearing the waiting list backlog.”

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