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Pay: Nurses

Volume 460: debated on Thursday 24 May 2007

To ask the Chancellor of the Exchequer what estimate he has made of the saving to the Treasury resulting from phasing the nurses’ pay award in 2007; what percentage of the total money supply this saving represents; and what estimated reduction in inflation is predicted as a result of staging nurses’ pay in 2007. (135938)

[holding answer 8 May 2007]: The Government aim to strike a balance between the need to pay at levels necessary to recruit, retain and motivate staff, while at the same time ensuring that pay increases do not increase inflationary pressures and are affordable within the overall public finances.

Wage pressures are one of the factors considered by the Monetary Policy Committee of the Bank of England when setting interest rates to meet the inflation target.