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U.K. Lifts National Health Service Pay Cap, Ending Austerity

  • Unions met in London to sign off on 6.5% three-year pay rise
  • May came under pressure over nurses’ pay during 2017 election
Inside Royal London Hospital
Photographer: Chris J. Ratcliffe/Bloomberg
Updated on

U.K. Prime Minister Theresa May’s government lifted the cap on pay for staff in the National Health Service, signaling an end of austerity that has shrunk the real income of nurses over the past eight years.

Under the new deal reached Wednesday, health workers will see their pay rise by 6.5 percent on average over the next three years. Officials from unions representing NHS staff met on Wednesday to sign off on the agreement, which will cost the government about 4.2 billion pounds ($5.9 billion) over three years and cover more than one 1 million people -- but exclude doctors.