§ Mr. HawkinsTo ask the Secretary of State for Social Services what increase in National Health Service funding would be necessary in the coming year to cover agreed pay rises and to allow over costs to rise by the national rate of inflation; and what additional amount would be needed to cover pay rises from the current year which were not fully funded.
§ Mr. Newton[holding answer 26 January 1988]: Health authorities plan on the assumption that pay and price increases must be met from within the total resources available to them. It is too early to predict the level of pay inflation in 1988–89. The Government will, however, continue to assess carefully the cost of NHS pay awards and their implications for health authorities.
Pay awards in 1987–88 will add an estimated £620 million to health authority expenditure. Authorities have met these costs from allocations which have increased nationally by almost £980 million and from cash releasing cost improvements which this year are expected to yield £150 million.