Nurses and doctors to get pay rises
Chancellor Rishi Sunak has announced a spending review, including more money for NHS workers
Last updated 23rd May 2022
Doctors, nurses and other NHS workers will be getting a pay rise - that's from Chancellor Rishi Sunak's Spending Review which was announced today.
The Chancellor outlined the plan to give the NHS workers a pay rise, but also announced that other public sector workers would not be getting a raise.
Mr Sunak said he “cannot justify a significant, across-the-board” pay increase for all public sector workers in the circumstances.
Over a million nurses, doctors and others working in the NHS will get a rise but pay rises for the rest of the public sector will be “paused” – except for the 2.1 million workers earning below the median wage of £24,000, who will receive an increase of at least £250.
What else was announced in today's spending review?
As expected, the Review was very much based around the UK's recovery from the coronavirus pandemic and the effect it has had on the economy, with Rishi Sunak saying there will be “lasting damage” to the UK.
Official forecasts showed the UK economy is expected to shrink by 11.3% this year, the worst recession for more than 300 years.
Borrowing levels have increased to the highest recorded numbers during peacetime, this year the Government will borrow £394 billion, equivalent to 19% of Gross Domestic Product.
Mr Sunak said: “Our health emergency is not yet over. And our economic emergency has only just begun.
“So our immediate priority is to protect people’s lives and livelihoods.”
Overseas aid cut in Spending Review
The cut to the aid budget sees the Government going back on a manifesto commitment to spend 0.7% of national income on development assistance.
Mr Sunak said: “Sticking rigidly to spending 0.7% of our national income on overseas aid, is difficult to justify to the British people, especially when we’re seeing the highest peacetime levels of borrowing on record.”
Instead of the existing target, Mr Sunak said 0.5% would be spent in 2021, around £10 billion.
The Government faced condemnation from charities and criticism from senior Tories about the move.
But Mr Sunak insisted that “at a time of unprecedented crisis government must make tough choices” and promised that spending would return to 0.7% “when the fiscal situation allows”.
Unemployment rising
According to the Office for Budget Responsibility (OBR) forecasts, unemployment is set to soar to 7.5% in the second quarter of 2021 – with 2.6 million people out of work – falling to 4.4% by the end of 2024.
The Chancellor set out a nearly £3 billion Restart programme to help get people back into work.
For those in work, the national living wage will increase by 2.2% to £8.91 an hour – lower than the £9.21 rate previously expected from April 2021.
Scotland, Wales and Ireland get increased funding
The Chancellor announced an increase in funding for the devolved nations.
The Scottish Government’s funding will increase by £2.4 billion, Wales will receive £1.3 billion and there is £0.9bn for the Northern Ireland Executive.
Coronavirus response
Mr Sunak said £280 billion was being spent on the coronavirus response this year.
Next year some £55 billion was earmarked for public services dealing with the crisis, including an initial £18 billion for testing, personal protective equipment and vaccines.