NHS and Teacher Pay Rises Must Come From Existing Budgets, Says Government

The government has confirmed that any upcoming pay rises for NHS staff and teachers in England must be funded from existing budgets, not through additional borrowing.

Independent pay review bodies are expected to recommend salary increases of around 4% for teachers and 3% for NHS staff, higher than the 2.8% originally budgeted by Chancellor Rachel Reeves. However, Downing Street has insisted that any increases must be covered by cuts within current departmental budgets.

Labour leader Keir Starmer urged cooperation to avoid strike action, stressing the importance of working with NHS staff rather than confronting them. He said ongoing collaboration was helping to reduce waiting lists and improve patient care.

Unions, including the National Education Union (NEU) and NASUWT, have warned of potential strikes if schools are not given additional funding to meet higher salary costs.

Care Minister Stephen Kinnock said the government would give the recommendations “careful consideration” but emphasised the need to balance fiscal responsibility with supporting working people.

The Treasury is expected to issue a formal response to the pay recommendations in the coming weeks.