Abstract
In April 2008, the Health Secretary, Alan Johnson, agreed a 3-year pay deal with the Royal College of Nursing and Unison that offers nurses an immediate pay rise of 2.75%: 2.4% in year 2009/2010, and 2.25% in year 2010/11. This deal, the highest offered in the public sector in the current round of pay negotiation, will raise the minimum starting salary for a newly qualified nurse to more than £20 000 per year. This agreement would have been regarded as unacceptably inflationary if Alan Johnson had not framed the award within an unprecedented 3-year settlement; with a proviso that if inflation is higher than expected, the unions will be able to appeal to an independent pay review body to be compensated for the loss of purchasing power.
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