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The multi-year agreement between the RCN, Unison, NHS Employers and the DoH, would mean a 2.75 per cent pay award for NHS staff in 2008/9, a 2.4 per cent rise in 2009/10 and a 2.25 per cent rise in 2010/11.

A further 0.59 per cent will be made up of changes to incremental points for staff in bands 1, 5 and 6. Nurses, midwives and paramedics on the main grade 5 and the bottom of grade 6 will receive extra money, on top of the basic increase in years two and three, to recognise that more than a quarter have reached their pay ceilings.

The proposal also includes a clause that will allow pay increases in the second two years to be reviewed if inflation is higher than expected.

Dr Peter Carter, chief executive and general secretary of the RCN, said: ‘We have always said that we would only consider signing a three-year deal if it was fair and offered nurses protection against future rises in inflation. We are delighted to put the RCN's name to a proposal that does just that.'

Dr Carter added that the three-year deal was better than had been expected, and went some way to bridging the gap between the pay of nurses and other public sector workers.

Karen Jennings, Unison's head of health, said: ‘The proposed deal is the highest in the public sector. It would set a new minimum wage of £6.77 an hour from next year and gives more money to nurses, midwives and paramedics stuck at the top of their grades. It does offer pay stability over the next three years.'

emma.bower@haymarket.com

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