Doctors and teachers offered 4% pay rise in England and Wales

Published

2 months ago

May 23, 2025

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Doctors and teachers will be given a 4% pay rise after the government accepted recommendations from independent review bodies.

The salary increases, announced by ministers on Thursday afternoon, are 2.8% above what the government had originally budgeted for.

The 4% rise is just above the current rate of inflation, which increased from 2.6% in March to 3.5% in April.

It will apply to all doctors and teachers in England and Wales.

But both the British Medical Association (BMA) and National Education Union (NEU) have threatened further strike action following the announcement, claiming the increases do not account for historical pay freezes.

Other NHS workers in England, including nurses, midwives, and physiotherapists, will get a 3.6% pay increase effective from 1 April, Health Secretary Wes Streeting said.

He added that junior doctors would be offered an average increase of 5.4% as a result of a further £750 top-up.

Senior civil servants will get a 3.25% pay increase, the Cabinet Office added, but there are still changes to be made to higher salary bands within the civil service.

Prison officers and managers will get the same 4% pay rise as doctors and teachers, Justice Secretary Shabana Mahmood said.

Military personnel are being offered a 4.5% rise following their own independent pay review. Senior military officers will get a slightly lower boost of 3.75%, with Defence Secretary John Healey saying the changes “recognise their dedication to keep Britain secure at home and strong abroad”.

Unions say offers are ‘woefully inadequate’

The government’s proposals on pay have been met with anger among healthcare unions, with the BMA describing its offer for doctors as “woefully inadequate”.

Professor Philip Banfield, chairman of the BMA council, said doctors are already considering striking again.

“Doctors’ pay is still around a quarter less than it was in real terms 16 years ago and today’s ‘award’ delays pay restoration even more, without a government plan or reassurance to correct this erosion of what a doctor is worth,” he said.

Other NHS workers who belong to either the Royal College of Nursing (RCN) or GMB unions are being asked to vote on whether they will accept their offers or not.

RCN general secretary and chief executive Professor Nicola Ranger warned pay increases have already been “entirely swallowed up by inflation and do nothing to change the status quo – where nursing is not valued, too few enter it and too many quit”.

Schools will have to fund 1% themselves

While education unions have been less resistant, the NEU, which is the largest teacher union, threatened to “register a dispute” with the government if it does not fund all of the pay rises itself – as they are currently being offered as part of existing school budgets, which they insist are needed for pressing matters outside staffing.

Schools will be given an additional £615m towards the pay increases this financial year, but they will be expected to find the final 1% of the 4% rise themselves – “through improved productivity and smarter spending”.

Education Secretary Bridget Phillipson said: “I believe schools have a responsibility, like the rest of the public sector, to ensure that their funding is spent as efficiently as possible.”

General secretary of the TUC Paul Nowak said further negotiations with the government would be needed to resolve outstanding issues.

He said his and other unions want to “work with the government to address the recruitment and retention crisis gripping our public services”.

“Ministers need to talk directly to unions to address the root causes behind dedicated and experienced public servants quitting their professions,” he warned.

“We need a clear, jointly-agreed long-term strategy to improve public-sector pay, alongside other crucial issues such as better working hours, more manageable workloads and enhanced flexible working options.”

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Tesla approves $29bn share award to Elon Musk

Published

13 hours ago

August 4, 2025

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Tesla approves bn share award to Elon Musk

Tesla’s board has signed off a $29bn (£21.8bn) share award to Elon Musk after a court blocked an earlier package worth almost double that sum.

The new award, which amounts to 96 million new shares, is not just about keeping the electric vehicle (EV) firm’s founder in the driving seat as chief executive.

The new stock will also bolster his voting power from a current level of 13%.

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He and other shareholders have long argued that boosting his interest in the company is key to maintaining his focus after a foray into the trappings of political power at Donald Trump‘s side – a relationship that has now turned sour.

Musk is angry at the president’s tax cut and spending plans, known as the big beautiful bill. Tesla has also suffered a sales backlash as a result of Musk’s past association with Mr Trump and role in cutting federal government spending.

The company is currently focused on the roll out of a new cheaper model in a bid to boost flagging sales and challenge steep competition, particularly from China.

The headwinds have been made stronger as the Trump administration has cut support for EVs, with Musk admitting last month that it could lead to a “few rough quarters” for the company.

Tesla is currently running trials of its self-driving software and revenues are not set to reflect the anticipated rollout until late next year.

Musk had been in line for a share award worth over $50bn back in 2018 – the biggest compensation package ever seen globally.

But the board’s decision was voided by a judge in Delaware following a protracted legal fight. There is still a continuing appeal process.

Earlier this year, Tesla said its board had formed a special committee to consider some compensation matters involving Musk, without disclosing details.

The special committee said in the filing on Monday: “While we recognize Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging… we are confident that this award will incentivize Elon to remain at Tesla”.

It added that if the Delaware courts fully reinstate the 2018 “performance award”, the new interim grant would either be forfeited or offset to ensure no “double dip”.

The new compensation package is subject to shareholder approval.

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Motor finance operators can breathe big sigh of relief

Published

13 hours ago

August 4, 2025

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Motor finance operators can breathe big sigh of relief

Bank stocks have enjoyed a boost as traders digest the Supreme Court’s ruling on the car finance scandal.

Some of the country’s most exposed lenders, including Lloyds and Close Brothers, saw their share prices jump by 7.55% and 21.62% respectively.

It came after the court delivered a reprieve from a possible £44bn compensation bill.

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Banks will still most likely have to fork out over discretionary commissions – a type of commission for dealers that was linked to how high an interest rate they could get from customers.

The FCA, which banned the practice in 2021, is currently consulting on a redress scheme but the final bill is unlikely to exceed £18bn. Overall, the result has been better than expected for the banks.

Lloyds, which owns the country’s largest car finance provider Black Horse, had set aside £1.2bn to cover compensation payouts.

Following the judgment, the bank said it “currently believes that if there is any change to the provision, it is unlikely to be material in the context of the group”.

The judgment released some of the anxiety that has been weighing over the Bank’s share price.

Jonathan Pierce, banking analyst at Jefferies, said the FCA’s prediction was “consistent with our estimates, and most importantly, we think it largely de-risks Lloyds’ shares from the ‘motor issue'”.

Bank stocks have responded robustly to each twist and turn in this tale, sinking after the Court of Appeal turned against them and jumping (as much as 8% in the case of Close Brothers) when the Supreme Court allowed the appeal hearing.

Concerns about this volatility motivated the Supreme Court to deliver its judgment late in the afternoon so that traders would have time to absorb the news.

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FCA considering compensation scheme over car finance scandal – raising hopes of payouts for motorists

Published

1 day ago

August 3, 2025

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FCA considering compensation scheme over car finance scandal - raising hopes of payouts for motorists

Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.

In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.

The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.

It is unclear how many people could be eligible for a pay-out. The authority estimates most individuals will probably receive less than £950 in compensation.

The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.

What motorists should do next

The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.

Anyone who has already complained does not need to do anything.

The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”

Its website advises drivers to complain to their finance provider first.

If you’re unhappy with the response, you can then contact the Financial Ombudsman.

The FCA has said any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.

It has warned motorists that doing so could end up costing you 30% of any compensation in fees.

The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

The court overturned a ruling that would have meant millions of motorists could have been due compensation over “secret” commission payments made to car dealers as part of finance arrangements.

The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.

Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.

In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.

This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.

It was previously estimated that about 40% of car finance deals included DCAs while 99% involved a commission payment to a broker.

Nikhil Rathi, chief executive of the FCA, said: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated.

“We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”