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2013 government spending review

Use this page for further analysis and reaction to Chancellor George Osborne's comprehensive spending review announcement on Wednesday 26 June 2013.

Chancellor's Statement

'...the biggest reform we make on pay is to automatic progression pay. This is the practice whereby many employees not only get a pay rise every year, but also automatically move up a pay grade every single year - regardless of performance... we will end automatic progression pay in the Civil Service by 2015-16. And we are working to remove automatic pay rises simply for time served in our schools, NHS, prisons and police. The armed forces will be excluded from these reforms.'

Access the speech in full on the UK government website: www.gov.uk

Extracts from the spending review document

...Departments will be putting in place plans to end automatic time-served progression pay in the civil service by 2015-16. In addition, substantial reforms to progression pay will be taken forward or are already underway for teachers, the health service, prisons and the police - ensuring that public sector workers do not receive pay increases purely as a result of time in post. (page 8)

Departments will put in place plans to end automatic time-served progression pay in the civil service by 2015-16. Automatic progression for teachers will be abolished. Uplifts for prison officers will become non-contractual and subject to performance assessments. The police have been subject to a two-year progression freeze. Most health staff will be subject to local performance standards which will link progression pay more closely to performance, not time served, and the Government will seek further reforms. (page 28)

Download the full spending review document (PDF)

NHS Employers reaction

'Government departments will be putting in place plans to end automatic time-served progression pay in the civil service by 2015-16. In addition, substantial reforms to progression pay will be taken forward, or are already underway, for teachers, the health service, prisons and the police. The recent amendments to the Agenda for Change agreement already allow employers to link pay progression to meeting performance requirements, so we await further clarity on any implications for the NHS and any impact it may have on the potential future negotiations of the junior doctors and consultant contract.'

www.nhsemployers.org

CSP reaction

We will be seeking clarification with employers and NHS Pay Review Body (PRB) on what the Chancellor's announcements and the Spending Review means for incremental pay in the NHS.

But in our view the recent changes to the Agenda for Change (AfC) agreement in England, agreed with unions including the CSP, have already ended automatic pay progression.

Pay is a devolved matter for the governments of Northern Ireland, Wales and Scotland.

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Last reviewed

28 June 2013

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