NHS pay increases in 2024/2025: FOI release

Information requested

1. Has the Scottish Government set aside funding for NHS pay increases in 24/25?

2. If yes to the above, how much has been set aside?

3. Does the Scottish Government accrue interest on this prior to the pay agreement being finalised and the deal being implemented?

4. If the answer is yes to the above, can you confirm how much interest has been accrued to date?

Response

1. Has the Scottish Government set aside funding for NHS pay increases in 24/25? If yes to the above, how much has been set aside?

As per the public sector pay policy, the Scottish Government was planning on the basis of providing 2024-25 pay deals of 2% from April 2024 and 1% from January 2025. Following pay discussions, current offers for NHS pay increases in 2024/25 are as follows:

5.5% from April 2024 for Agenda for Change staff, which equates to £448 million

8.5% from April 2024 plus 2.3% from October 2024 for Resident Doctors, which equates to £64.1 million

10.5% from April 2024 plus £5.7 million invested to uplift Discretionary Points for Consultants, which  equates to £124.9 million. The financial challenge to support pay and other pressures was set out in the Cabinet Secretary for Finance and Local Government’s fiscal statement dated 3 September 2024. (Scottish Government Pre-Budget Fiscal Update: Letter to Finance Committee - gov.scot (www.gov.scot))

3. Does the Scottish Government accrue interest on this prior to the pay agreement being finalised and the deal being implemented?

No. The Scottish Government draws down cash from HMT on a monthly basis to cover expenditure for the following month’s payments only. Therefore the cash required to meet pay awards is drawn down from HMT for the month that it is paid. In addition, the Scottish Government main bank account is noninterest-bearing and there is no financial benefit or interest accrued from holding any cash balances each month.

4. If the answer is yes to the above, can you confirm how much interest has been accrued to date?
N/A

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