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The government needs to find £4bn in spare cash to fund NHS pay rises, with some of it coming from “areas of underspend”.

The one-off payment offered to frontline workers on Thursday will cost £2.7bn, Downing Street has said, while the 5% pay rise will cost £1.3bn.

A 3.5% pay increase had already been factored into the existing budget before a new deal was put to health unions, leaving ministers scrambling to find the rest.

Asked where the money will come from, the PM’s spokesperson said “areas of underspending” had been identified.

They did not go into specifics but added “we will discuss with Treasury and work together to resolve any new funding needs”.

Pressed on the source of the funding again, they said the money is “not coming from patient-facing services”.

Ministers previously said they can’t afford to give striking NHS workers a pay rise because the money would have to be taken out of the existing NHS budget – which was not considered an option at a time of record-high waiting lists.

But there was a major breakthrough on Thursday as the government and unions reached a new deal that could herald the end of industrial action across most of the health service.

The offer consists of a one-off payment of 2% of their salary plus a COVID recovery bonus of 4% for the current financial year 2022/23, and a 5% pay increase for 2023/24.

Workers on the picket line outside Queen Elizabeth hospital in Birmingham during a strike by nurses and ambulance staff. Picture date: Monday February 6, 2023.
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The government has insisted the pay deal to end strikes won’t come out of the budget for patient services

Health Secretary Steve Barclay said it will apply to thousands of key workers including nurses, paramedics and midwives but could not say how the rise would be funded.

When questioned on this he deferred to the Treasury, saying only that it “would not come from areas of the budget that impact on patients”.

The prime minister gave a similar answer when pressed during a visit to a south London hospital on whether patient care would be hit, saying: “Absolutely not. We’re going to be making sure we protect all frontline services with £14bn of more funding we announced at the end of last year.”

Most unions have recommended members vote for the pay rise, and have agreed to pause industrial action during that process.

Only Unite said it could not recommend the deal to its membership but said a vote would ultimately decide the union’s position on the offer.

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Junior doctors have welcomed pay talks with the Health Secretary and are ‘hopeful’ the dispute can be resolved to avert further strikes.

Tens of thousands of nurses, paramedics and other healthcare staff went on strike just before Christmas, then again in January and February, leading to the cancellation of around 140,000 appointments and operations.

Labour criticised the government for delays in getting around the negotiating table, with shadow health secretary Wes Streeting branding his government counterpart “lastminute.com Steve Barclay”.

Speaking to Sky News, he accused the health secretary of “having cheek” by deferring questions on how the pay rise will be funded to the Treasury, adding: “Newsflash Steve Barclay, the budget was yesterday.

“If he pulled his finger out before Christmas and negotiated a deal, not only would we have avoided the strike action and the 140,000 cancelled operations and appointments, he might have got a better deal for the NHS.”

The breakthrough has sparked hopes of resolving other long-running industrial disputes, with the government and education unions beginning “intensive” talks today on pay and conditions.

Asked whether an offer to teachers could look similar to the NHS deal, the PM’s spokesperson stressed that each pay offer is “unique”, and the two-pronged agreement is “specific to the work NHS staff have done”.

Asked if that recognition will apply to junior doctors, who are embroiled in a separate dispute, the spokesperson said: “We want talks to start as soon as possible but it’s dependent on them cancelling or pausing strikes. As soon as they pause strike action we can have talks.”

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Ryland Headley: Man, 92, who raped and murdered Louisa Dunne in Bristol nearly 60 years ago, jailed for life

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Ryland Headley: Man, 92, who raped and murdered Louisa Dunne in Bristol nearly 60 years ago, jailed for life

A 92-year-old man has been sentenced to life with a minimum term of 20 years in prison for the rape and murder of an elderly widow nearly 60 years ago.

Ryland Headley was found guilty on Monday of killing 75-year-old Louisa Dunne at her Bristol home in June 1967, in what is thought to be the UK’s longest cold case to reach trial, and has been told by the judge he “will die in prison”.

The mother-of-two’s body was found by neighbours after Headley, then a 34-year-old railway worker, forced his way inside the terraced house in the Easton area before attacking her.

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The UK’s longest cold case to reach trial

Police found traces of semen and a palm print on one of the rear windows inside the house – but it was about 20 years before DNA testing.

The case remained unsolved for more than 50 years until Avon and Somerset detectives sent off items from the original investigation and found a DNA match to Headley.

He had moved to Suffolk after the murder and served a prison sentence for raping two elderly women in 1977.

Prosecutors said the convictions showed he had a “tendency” to break into people’s homes at night and, in some cases, “target an elderly woman living alone, to have sex with her despite her attempts to fend him off, and to threaten violence”.

Louisa Parker (later Dunne) in 1933. Pic: Avon and Somerset Constabulary
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Louisa Dunne in 1933. Pic: Avon and Somerset Constabulary

Headley during his arrest. Pic: Avon and Somerset Constabulary
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Headley during his arrest. Pic: Avon and Somerset Constabulary

Headley, from Ipswich, who did not give evidence, denied raping and murdering Ms Dunne, but was found guilty of both charges after a trial at Bristol Crown Court.

Detectives said forces across the country are investigating whether Headley could be linked to other unsolved crimes.

Mrs Dunne’s granddaughter, Mary Dainton, who was 20 when her relative was killed, told the court that her murder “had a big impact on my mother, my aunt and her family.

“I don’t think my mother ever recovered from it. The anxiety caused by her mother’s brutal rape and murder clouded the rest of her life.

“The fact the offender wasn’t caught caused my mother to become and remain very ill.

“When people found out about the murder, they withdrew from us. In my experience, there is a stigma attached to rape and murder.”

The front of Louisa Dunne's home. Pic: Avon and Somerset Constabulary
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The front of Louisa Dunne’s home. Pic: Avon and Somerset Constabulary

Louisa Dunne's skirt. Pic: Avon and Somerset Constabulary
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Louisa Dunne’s skirt. Pic: Avon and Somerset Constabulary

Finding out her grandmother’s killer had been caught after almost six decades “turned my life upside down,” she said.

“I feel sad and very tired, which has affected the relationships I have with those close to me. I didn’t expect to deal with something of such emotional significance at this stage of my life.

“It saddens me deeply that all the people who knew and loved Louisa are not here to see that justice has been done.”

Palmprint images. Pic: Avon and Somerset Constabulary
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Palmprint images. Pic: Avon and Somerset Constabulary

After her statement, Mr Justice Sweeting told Mrs Dainton: “It is not easy to talk about matters like this in public.

“Thank you very much for doing it in such a clear and dignified way.”

The judge told Headley his crimes showed “a complete disregard for human life and dignity.

“Mrs Dunne was vulnerable, she was a small elderly woman living alone. You treated her as a means to an end.

“The violation of her home, her body and ultimately her life was a pitiless and cruel act by a depraved man.

“She must have experienced considerable pain and fear before her death,” he said.

Sentencing Headley to life imprisonment with a minimum term of 20 years, the judge told him: “You will never be released, you will die in prison.”

Detective Inspector Dave Marchant of Avon and Somerset Police said Headley was “finally facing justice for the horrific crimes he committed against Louisa in 1967.

“The impact of this crime has cast a long shadow over the city and in particular Louisa’s family, who have had to deal with the sadness and trauma ever since.”

The officer praised Ms Dainton’s “resilience and courage” during what he called a “unique” case and thanked investigators from his own force, as well as South West Forensics, detectives from Suffolk Constabulary, the National Crime Agency and the Crown Prosecution Service (CPS).

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Charlotte Ream, of the CPS, described Headley’s crimes as “appalling”.

She said Louisa Dunne “died in a horrifying attack carried out in the place where she should have felt safest – her own home.

“Mrs Dunne’s death continues to have a traumatic impact on her family members: the passage of time has not lessened their pain.

“For 58 years, this appalling crime went unsolved and Ryland Headley, the man we now know is responsible, avoided justice.”

Jeremy Benson KC, defending Headley, offered no personal mitigation on behalf of the defendant.

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Three members of Lucy Letby hospital’s senior leadership team arrested

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Three members of Lucy Letby hospital's senior leadership team arrested

Three managers at the hospital where Lucy Letby worked have been arrested on suspicion of gross negligence manslaughter.

They were in senior roles at the Countess of Chester Hospital in 2015 and 2016 and have been bailed pending further enquiries, Cheshire Constabulary said. Their names have not been made public.

Letby, 35, was found guilty of murdering seven children and attempting to murder seven more between June 2015 and June 2016 while working in the hospital’s neonatal unit.

Detective Superintendent Paul Hughes explained that gross negligent manslaughter focuses on the “action or inaction of individuals”.

There is also an investigation into corporate manslaughter at the hospital, which began in October 2023.

That focuses on “senior leadership and their decision-making”, Mr Hughes said. The intention there is to determine whether any “criminality has taken place concerning the response to the increased levels of fatalities”.

The scope was widened to include gross negligence manslaughter in March of this year.

lucy letby
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Lucy Letby was found guilty of murdering seven children and attempting to murder seven more

Mr Hughes said it is “important to note” that this latest development “does not impact on the convictions of Lucy Letby for multiple offences of murder and attempted murder”.

He added: “Both the corporate manslaughter and gross negligence manslaughter elements of the investigation are continuing and there are no set timescales for these.

“Our investigation into the deaths and non-fatal collapses of babies at the neo-natal units of both the Countess of Chester Hospital and the Liverpool Women’s Hospital between the period of 2012 to 2016 is also ongoing.”

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A public inquiry has also been examining the hospital’s response to concerns raised about Letby before her arrest.

In May, it was announced the inquiry’s final report into how the former nurse was able to commit her crimes will now be published early next year.

Earlier this year, lawyers for Lucy Letby called for the suspension of the inquiry, claiming there was “overwhelming and compelling evidence” that her convictions were unsafe.

In February, an international panel of neonatologists and paediatric specialists told reporters that poor medical care and natural causes were the reasons for the collapses and deaths.

Their evidence has been passed to the Criminal Cases Review Commission (CCRC), which investigates potential miscarriages of justice, and Letby’s legal team hopes her case will be referred back to the Court of Appeal.

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‘My lungs felt like they were filled with blood’: Stab victim reveals reality of knife crime

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'My lungs felt like they were filled with blood': Stab victim reveals reality of knife crime

As we pulled back the hospital curtain, he was hunched over and clearly in pain.

He had climbed off the hospital bed to greet us with a polite smile, then hobbled back to lie down again.

Every breath was uncomfortable, but he wanted to share the horrible reality of knife crime.

The young victim
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The young knife attack victim in Manchester

“I’ve never in my life been stabbed so I don’t know how it’s meant to even feel,” he said.

“The pain came when I realised the blood’s just spitting out of the side of my rib cage and that’s when I started panicking.

“My lungs felt like they were filled with blood… I thought each breath that I take, I’m going to drown in my own blood.

“I just felt as though I was slowly slipping away.”

Paramedics helped save his life and got him to the hospital in Manchester.

The young victim was clearly in pain

Sky News cannot name the young victim or go into the details of the attack because the police are investigating his case.

We were alongside a support worker called Favour, who is part of a growing team called Navigators. They go into hospitals to help young victims of violence.

While checking on how his recovery is going, she gently asked what he wanted to do next.

“You should have the right to feel safe,” she said to him.

“So don’t blame yourself for what happened… we are going to be there to help you.”

Favour talks with the victim
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Favour talks with the victim

‘Scarring and traumatic’

In a corridor outside the major trauma ward at the Manchester Royal Infirmary, Favour said: “They are often scared, often really tired from being in hospital.

“It does stay with you, not just for a couple of weeks, but it can go on for months, years, because it is something very scarring and traumatic.

“Having someone to talk to, being able to be very vulnerable with… that can lead you to find different spaces that are safe for you, can make a huge difference.”

In the adjacent Children’s Hospital in Manchester, we met the clinical lead at the Greater Manchester Violence Reduction Unit.

Support worker Favour is part of a team called Navigators
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Support worker Favour is part of a team called Navigators

Dr Rachel Jenner is a senior consultant who expanded her emergency department work into the wider mission of violence reduction after treating one particular young stab victim.

“When he arrived at the hospital, he was obviously very distressed and stressed,” she said. “A little bit later on, when things were stable, I asked him if he wanted me to call his mum.

“When I asked that question, he just kind of physically crumpled on the bed and just looked like the vulnerable child that he was, and that was really impactful for me.”

Dr Rachel Jenner
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Dr Rachel Jenner

‘Positive results’

The Violence Reduction Unit was established in 2019 with a commitment from the city’s authorities to work together better to prevent violence and deal with it efficiently when it occurs.

Dr Jenner still treats young knife crime victims, but revealed the number of stab-related admissions is falling in her hospital.

“The trend is downwards,” she confirmed. “We’ve definitely seen some positive results.”

The latest statistics in England and Wales show the number of hospital admissions for assault by a sharp object fell by 3% to 3,735 admissions in the year ending September 2024.

“We’re never complacent,” Dr Jenner said. “You reality check yourself all the time, because obviously if… someone gets stabbed, then it’s quite possible that I’ll be treating them.”

She said the Navigators are crucial to working with young patients.

“They have a really different way of engaging with young people, they’re much better at it than many other professionals,” she said.

“It’s not a one-size-fits-all model, they actually wrap around that support according to circumstances… that’s a really positive improvement.”

Tacking violence ‘like infectious disease’

Dr Jenner added: “We try and take a public health approach to violence reduction. In the same way that we would address an infectious disease, if we can use those methods and principles to look at violence.

“Not just reacting when it happens, but actually looking at how we can prevent the disease of violence, that in the long term will have a bigger impact.”

The key is teamwork, Dr Jenner said. Collaboration between the police, community leaders, victim support, health workers and people in education has noticeably improved.

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Students practise stopping a bleeding
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Students practise stopping a bleed

Children describe knife crime threat

The hospital also sends consultants into schools to teach pupils how to stop bleeds as part of an annual nationwide initiative that reaches 50,000 young people.

At a Stop The Bleed session in Bolton, Greater Manchester, we met 11 and 12-year-olds growing up with the threat of knife crime.

One Year 7 boy said: “There was a stabbing quite near where I live so it does happen, but it’s very crucial to learn how to stop this bleed and how to stop deaths.”

Another two friends talked about a boy their age who had been involved in an incident with a knife.

“No one would expect it for someone that young,” one said. “They’re just new to high school, fresh out of primary, and they shouldn’t just be doing that, too young.”

Teacher
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Sanaa Karajada

‘We are dealing with it every day’

Their school has decided to tackle the problem of knife crime head-on rather than pretend it isn’t affecting their pupils.

The pastoral lead at the school, Sanaa Karajada, told Sky News: “We are dealing with it every single day, so we have policies and procedures in place to prevent any escalations in our schools or in the community.

“It is very, very worrying and it’s upsetting that [students] are having to go through this, but you know we’ve got to be realistic… if we are shying away from it, we’re just saying it’s not a problem.

“But it is a problem within the community, it’s a problem in all of the UK.”

The government has pledged to halve knife crime within a decade.

These signs of progress may offer some hope, but there is still so much work to do.

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