The emergency budget – what does it mean for health? The short answer is that the coalition is arguing that, unlike other sections of the public sector, health will be protected from swinging cuts to budgets and services.

Unfortunately, this does not stop employers taking the initiative and making changes at local level to trim already slim budgets with the consequence that career aspirations for members cannot be met or are severely curtailed.

We have reported before that this is a short-sighted policy with the inevitable consequence that services and staff morale will suffer and the patient becomes the victim as they struggle to find a service.

The emergency budget – rather than clarifying the current needs of the nation to meet the debts crisis – is more confused than ever for staff in the public service.

Already we understand that all staff earning less than £21,000 will receive a sum of money. The problem is that the sum referred to (£250 per annum for two years for members earning less than £21,000) is either the maximum or the minimum. Then again it could also be a flat payment! It remains unclear at the time of writing exactly what the true story is.

We have been told that staff will continue to receive their increments and the £21,000 cut-off point will not affect this payment.

Then again, we have the status of the National Pay Review Body (NPRB) that advises the government about pay. The two-year pay freeze will effectively mothball this body. This will mean that for a period of five years, if you include the current three-year pay freeze, the NPRB will have had little to do but twiddle their thumbs.

We now know that even in the coalition, the policy of protecting the NHS is being questioned. Why should the NHS not suffer the same degree of pain as other public sector departments – a cut of 25% of the overall budget, ask many in government.

The real question remains: Is this degree of frugal accounting the most sensible way to handle the economy, or are we merely storing up problems in the future for health, education and social care? The problem is cyclical. The more you cut the public sector and increase unemployment the more you find that society relies on the public sector.

The SoR and other health sector unions are attempting to clarify the status of the announcements in the budget and the impact this will have on future financial security of the service and members.

Until we have more answers, the future of health and pay is decidedly unclear.

What do you think? What has your experience been so far? Leave your comments below or email the editor.

Posted: 01/07/2010