The Government has formally begun the process of setting NHS pay for 2027–28, signalling its intention to deliver next year's pay award closer to the start of the financial year
Health Secretary James Murray has written to the independent NHS Pay Review Body (NHSPRB) and the Review Body on Doctors' and Dentists' Remuneration (DDRB), asking them to begin gathering evidence for next year's pay recommendations. In his remit letter, he said the Government wanted to support a prompt pay announcement for the 2027–28 financial year.
The move represents another attempt to improve the timing of NHS pay awards after previous settlements were criticised for being announced well into the financial year, creating uncertainty for staff, NHS trusts and workforce planners.
The Department of Health and Social Care has asked the review bodies to consider a range of evidence, including recruitment and retention challenges, inflation, affordability, workforce productivity and the Government's wider ambitions for NHS reform. Ministers have also confirmed that evidence from the recently published 10-Year Health Plan will inform the review.
For NHS employers, an earlier pay process could provide greater certainty when setting budgets, planning recruitment campaigns and retaining experienced staff. Workforce shortages continue to affect many parts of the health service, particularly nursing, mental health, community services and specialist clinical roles.
Healthcare recruitment remains highly competitive, with employers across both the public and independent sectors competing for qualified professionals. Earlier confirmation of pay awards is expected to help NHS organisations provide clearer information to prospective employees and reduce the administrative burden associated with delayed or backdated settlements.
However, the decision has received a cautious response from the Royal College of Nursing (RCN), which says the Government has begun the formal pay review process before wider discussions on reforming the NHS pay system have been completed.
The RCN argues that while timely pay awards are welcome, broader reform of the Agenda for Change pay structure is needed to ensure nursing roles are properly recognised and rewarded. The union has called on ministers to conclude negotiations on long-term pay reform alongside the annual review process.
The NHS Pay Review Body will now begin collecting evidence from the Government, NHS Employers, trade unions and other stakeholders before making its recommendations. As an independent advisory body, it considers factors including recruitment, retention, workforce morale, economic conditions and affordability before submitting its report to ministers. The Government will then decide whether to accept the recommendations in full or in part.
The NHS is one of the UK's largest employers, with more than 1.5 million people working across England. Decisions on pay have a direct impact not only on existing employees but also on the NHS's ability to recruit new talent and retain experienced professionals at a time of continued workforce pressures.
The earlier timetable reflects the Government's commitment to improving the annual pay-setting process and avoiding the delays that have characterised previous years. If the review proceeds as planned, NHS staff could receive confirmation of their 2027–28 pay award much closer to April than has often been the case.
For employers, recruitment specialists and workforce leaders, a more predictable pay process is likely to be welcomed as part of wider efforts to strengthen workforce planning, improve staff retention and support the delivery of healthcare services across England.
Sources
- GOV.UK – NHS Pay Review Body Remit Letter 2027–28
- Department of Health and Social Care
- NHS Pay Review Body
- Royal College of Nursing
- Nursing in Practice