Hundreds of thousands of public sector workers in Wales are set for above-inflation pay awards, the Welsh Government has announced.
NHS staff, teachers and public sector workers in many devolved services will receive pay rises of between 5% and 6% in 2024/2025.
The announcement comes as the Welsh Government has accepted the recommendations from independent pay review bodies in full.
Doctors and dentists, including GPs and salaried GPs, will receive a 6% pay award, with an additional £1,000 for junior doctors.
The Welsh Government has also agreed up to an average 5% award for civil servants and for staff at a number of other public bodies, including Natural Resources Wales and the Development Bank of Wales.
First Minister Eluned Morgan said: “People across Wales have told us over the summer that public sector workers are the backbone of the services we all rely on – from the nurses in our NHS to teachers in classrooms across Wales.
“But the public has also been clear they want to see improvements in public services – especially in the NHS and education.
“We will work with these services to deliver on what people have told us over the summer listening exercise.”
Rebecca Evans, the cabinet secretary for finance, added: “We greatly value the hundreds of thousands of people working across the public sector in Wales and the work they do every day. We have worked hard to be able to make this offer.
Doctors at the BMA Cymru Wales welcomed the announcement.
Dr Oba Babs-Osibodu and Dr Peter Fahey, co-chairmen of the BMA’s Welsh Junior Doctors Committee, said the pay award was “another step in the right direction to better valuing doctors and restoring our pay”.
“Whilst we will continue to fight for full pay restoration to recover the years of real-terms pay cuts, today’s award does provide some further reversal of that erosion,” they said.
“Thanks to weeks of negotiations with the Welsh Government, we were able to reach a fairer settlement, and whilst it didn’t fully restore the real-terms pay lost over the last 15 years, today’s announcement of a 6% pay uplift brings us another step closer to achieving this goal.”
Darren Hughes, director of the Welsh NHS Confederation, which represents health boards and trusts in Wales, said: “Industrial action has taken a real toll on the health service in recent years, not least on patients due to the cancellation of appointments and operations.
“We hope today’s news takes us another step towards avoiding disruption to health services from industrial action.
“However, it is crucial that the pay award is funded in full by both the UK and Welsh governments as the NHS continues to work hard at recruiting and retaining staff and driving down waiting lists against the backdrop of an already very tight financial position.”
Teaching unions said it was vital the pay award was fully funded for all schools.
Laura Doel, national secretary at school leaders’ union NAHT Cymru, said: “While we understand the award will be fully-funded, we will be examining the detail with a microscopic lens to ensure all costs are covered for all schools, not just average costs.
“This is absolutely crucial at a time when so many school leaders are already suffering sleepless nights worrying about how they can set balanced budgets, with some facing the completely unpalatable prospect of making valued staff redundant.
“Investment in both the staffing and resources needed for schools to provide the high-quality education all children deserve really shouldn’t be too much to ask.”
Dr Patrick Roach, general secretary of the NASUWT, said: “It is disappointing that the Welsh Government has left teachers in limbo for so long before making today’s announcement.
“We urge the Government to work with us to secure the world class pay and conditions that teachers deserve.”
Independent pay review bodies make recommendations to governments about pay.
Other parts of the public sector in Wales, including local government staff, fire and rescue services and social care are not covered by the independent pay review bodies and their awards are negotiated through a separate process.
A four-week consultation will start on teachers’ pay, with the 5.5% award in line with England.
Responding to the announcement, Royal College of Nursing (RCN) Wales executive director Helen Whyley said: “Nursing staff have been eagerly awaiting the Welsh government decision since early July, which applies from April 2024.
“The PRB recommendations acknowledge the tireless dedication and essential role of nursing staff, but investment in NHS staff is imperative to fully reflect their contributions and to make the profession attractive to future nurses.
“Last year, the Welsh government made a commitment to pay restoration for NHS staff. Now they must decide how to achieve that over time. The RCN expects to see a clear route to fair pay restoration – making up for a very serious loss of earnings in the last 15 years.
“Stagnant salaries at a time of spiralling prices have forced too many to leave nursing and deterred others from joining. Fair pay is vital to recruiting and retaining nursing staff, to filling the thousands of vacant nurse jobs and giving people the care they deserve.”
