§ Mr. Dobsonasked the Secretary of State for Social Services what is (a) the total cost of the latest pay awards to National Health Service staff and (b) the total additional sum made available to health authorities to meet these costs.
§ Mr. HayhoeThe cost to the hospital and community health services in England in 1986–87 of the pay awards to review body staff announced by my right hon. Friend the Prime Minister on 22 May at columns239 to 244 will be £282 million.
Extra funding of £50 million has been added to health authorities' cash limits for 1986–87 and authorities are also benefiting from the fall in general inflation. Forecast general inflation was 4.5 per cent. when public expenditure provision for 1986–87 was decided, but the budget forecast was 3.75 per cent. which is equivalent to a saving for health 459W authorities in England of some £20 million on their non-pay expenditure. The Government's assessment is that the additional £50 million funding, together with the fall in inflation, will enable health authorities to pay for the review body awards without adversely affecting patient services.