Nurses pay rise 2025: 3% rise recommended for NHS staff

A 3% pay rise has been recommended by the NHS Pay Review Body for NHS nurses and other Agenda for Change staff.

Another year, another delay to confirmation about annual pay rises for nurses and other NHS staff. But despite delays, the NHS Pay Review Body has moved the process forward by recommending a 3% annual increase for NHS nurses and other Agenda for Change staff.

As always, this announcement has triggered heated debate among unions and experts, not least of all because of the government’s recent announcement that there was no budget for pay increases.

So here is a summary of the debate, what we know about the potential pay rise so far, and when it might be implemented.

3% suggested, despite funding challenges

The 3% pay rise that has been mooted comes shortly after an official government and NHS England announcement that the maximum pay rise that could be afforded would be 2.8%.

The government added that it would not fund any addition to this amount.

And in the meantime, the Royal College of Nursing (RCN) had described 2.8% as a “deeply offensive” rise that would do nothing to solve an ongoing staffing crisis.

In a sense, the 3% recommendation does little to alleviate anyone.

Health unions like the RCN and the majority of their members will consider this a pay rise that doesn’t meet rising living costs, and huge challenges around hiring and retaining nurses.

And meanwhile the NHS, even at just 3%, faces a big funding gap.

When will a final decision be made?

The official deadline for a pay decision has already passed – that’s 1st April. So the pay rise confirmation will be late and back-dated, as it has been in recent years.

Based on timelines from recent years, we could expect a formal confirmation within a month or two, so perhaps by early June 2025.

However, some experts are already suggested that major strikes are possible – which could change everything.

Why is strike action being discussed?

As with any pay rise, the amount has to be considered within the wider context of living costs in 2025.

Broadly speaking, this is why many talk about “real terms pay rises” – roughly meaning pay increases relative to living costs.

Viewed this way, a 3% increase could be viewed as a real terms reduction in pay, because living costs, such as energy bills, are rising by more than 3%.

The situation is complicated further by two factors.

Firstly, last year’s pay rise was a more generous 5.5%, announced soon after Labour came to power. Labour also sent a clear message that NHS staff deserved bigger pay rises – a message that now feels hollow to some.

And also, the Scottish government announced an 8% rise over two years for NHS staff, as well as a removal of pay review bodies within the process.

Everything is adding pressure to an already heated debate.

What happens next?

Unions will now have time to respond to the pay recommendation.

The government will also have time to respond to the recommendations, and to consider where funding can come from.

Furthermore, the RCN’s annual congress is taking place in two weeks’ time, giving nurses an opportunity to voice their opinion.

This event will play an important role in shaping what happens next in the negotiations, and whether strikes become a reality.

For now, as has been the case for many years, nurses face uncertainty regarding pay rises – both in terms of what might change, and when.