Junior doctors are “not exceptional in having inflation pressures” on their wages and should take the government’s proposed pay rise “seriously”, a minister has said.
Prime Minister Rishi Sunak confirmed on Thursday that he would be accepting recommendations from public sector pay review bodies to increase wages across the board – albeit without giving departments extra funding to pay for it.
As a result, an offer of a 6% rise, plus a one-off payment of £1,250, was made to junior doctors.
But the British Medical Association (BMA) – whose members are currently on strike and are calling for a full 35% pay restoration to bring salaries back to 2008 levels – said the new figure “serves only to increase the losses faced by doctors after more than a decade’s worth of sub-inflation pay awards”.
Asked by Sky News about the BMA’s reaction, Education Secretary Gillian Keegan said junior doctors were “not unusual” in the pressures they were facing as “every single person actually across the world, not even just across this country, has seen the impacts of inflation”.
She added: “So [junior doctors] are not exceptional in having, you know, inflation pressures. We all have inflationary pressures. Everybody does.”
Ms Keegan said it was a “tricky balancing act” to make pay offers without fuelling further increases in inflation, and the government was “trying to be fair”.
She said: “The independent pay review bodies have done a very thorough analysis, and they look at rates of recruitment, retention, they look at all the other sort of professions or similar professions, so they do do a very thorough job.
Advertisement
“And so, you know, I think it’s only fair that [junior doctors] should look at that and take that seriously.”
Sunak’s commitment to pay rises leaves long-term funding question
For the education secretary, this morning was a victory lap. Her team are cock-a-hoop with the resolution to teacher’s pay.
In the Department for Education, the extra money will be found by using underspends for this year and next that would usually be returned to the Treasury.
Education officials characterise this allowance by the chancellor as coming close to new money being provided.
But there is an issue with using one-off annual underspends to fund permanent pay commitments.
Come the next spending review, the extra money needed for the pay rises will need to be baked into broader government plans.
As it stands the overall budget for those plans looks far too tight to accommodate these bumper pay rises.
For many, this is more evidence that spending plans for after 2024 are a complete fiction.
But they are potentially a fiction that both parties will fight next year’s election committed to.
As for doctors, the news is less positive for the government.
It appears that both sides are locked in a total stalemate, with Rishi Sunak refusing more talks with the BMA.
For junior doctors, this is seen as more existential than a simple pay negotiation – it is about stopping medics leaving the UK and how the profession is valued.
The practical outcome, however, will be more strike action extending through the year.
That’s bad for patients.
But given his commitment to cut waiting lists, it’s also bad for the prime minister.
But the general secretary of the Trades Union Congress, Paul Nowak, told Sky News it would be “remiss of the government to ignore the concerns of NHS staff”.
“I think [junior doctors] have been very clear all along that what they want to see is a pathway to pay restoration,” he said. “That’s really important if we’re going to solve the recruitment and retention crisis in our NHS.
“Now, I don’t think [the unions] believe the government is going to put 35% on the table this year. I think what they want from the government is to set out how they are going to restore pay and how they are going to solve the recruitment and retention crisis for junior doctors, and indeed for more senior staff in the NHS.”
Mr Nowak added: “Across the public and private sector, workers are still facing another real terms pay cut, we’ve got a government that’s got no long-term plan for boosting wages and instead, it actually is intent on attacking trade unions who are standing up for people to get decent wage rises.
“Iwant a government that’s serious about engaging with unions and serious about listening to public and private sector workers, rather than attacking trade unions.”
The combination of full prisons and tight public finances has forced the government to urgently rethink its approach.
Top of the agenda for an overhaul are short sentences, which look set to give way to more community rehabilitation.
The cost argument is clear – prison is expensive. It’s around £60,000 per person per year compared to community sentences at roughly £4,500 a year.
But it’s not just saving money that is driving the change.
Research shows short custodial terms, especially for first-time offenders, can do more harm than good, compounding criminal behaviour rather than acting as a deterrent.
Image: Charlie describes herself as a former ‘junkie shoplifter’
This is certainly the case for Charlie, who describes herself as a former “junkie, shoplifter from Leeds” and spoke to Sky News at Preston probation centre.
She was first sent down as a teenager and has been in and out of prison ever since. She says her experience behind bars exacerbated her drug use.
More on Prisons
Related Topics:
Image: Charlie in February 2023
“In prison, I would never get clean. It’s easy, to be honest, I used to take them in myself,” she says. “I was just in a cycle of getting released, homeless, and going straight back into trap houses, drug houses, and that cycle needs to be broken.”
Eventually, she turned her life around after a court offered her drug treatment at a rehab facility.
She says that after decades of addiction and criminality, one judge’s decision was the turning point.
Spreaker
This content is provided by Spreaker, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spreaker cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spreaker cookies.
To view this content you can use the button below to allow Spreaker cookies for this session only.
“That was the moment that changed my life and I just want more judges to give more people that chance.”
Please use Chrome browser for a more accessible video player
0:22
How to watch Sophy Ridge’s special programme live from Preston Prison
Also at Preston probation centre, but on the other side of the process, is probation officer Bex, who is also sceptical about short sentences.
“They disrupt people’s lives,” she says. “So, people might lose housing because they’ve gone to prison… they come out homeless and may return to drug use and reoffending.”
Image: Bex works with offenders to turn their lives around
Bex has seen first-hand the value of alternative routes out of crime.
“A lot of the people we work with have had really disjointed lives. It takes a long time for them to trust someone, and there’s some really brilliant work that goes on every single day here that changes lives.”
It’s people like Bex and Charlie, and places like Preston probation centre, that are at the heart of the government’s change in direction.
“As far as I’m concerned, there’s only three ways to spend the taxpayers’ hard-earned when it comes to prisons. More walls, more bars and more guards.”
Prison reform is one of the hardest sells in government.
Hospitals, schools, defence – these are all things you would put on an election leaflet.
Even the less glamorous end of the spectrum – potholes and bin collections – are vote winners.
But prisons? Let’s face it, the governor’s quote from the Shawshank Redemption reflects public polling pretty accurately.
It’s a phrase that is frequently used so carelessly that it’s been diluted into cliche. But in this instance, it is absolutely correct.
More on Crime
Related Topics:
Without some kind of intervention, the prison system is at breaking point.
It will break.
Inside Preston Prison
Ahead of the government’s Sentencing Review, expected to recommend more non-custodial sentences, I’ve been talking to staff and inmates at Preston Prison, a Category B men’s prison originally built in 1790.
Overcrowding is at 156% here, according to the Howard League.
Image: Sophy Ridge talking outside Preston Prison
One prisoner I interviewed, in for burglary, was, until a few hours before, sharing his cell with his son.
It was his son’s first time in jail – but not his. He had been out of prison since he was a teenager. More than 30 years – in and out of prison.
His family didn’t like it, he said, and now he has, in his own words, dragged his son into it.
Sophie is a prison officer and one of those people who would be utterly brilliant doing absolutely anything, and is exactly the kind of person we should all want working in prisons.
She said the worst thing about the job is seeing young men, at 18, 19, in jail for the first time. Shellshocked. Mental health all over the place. Scared.
And then seeing them again a couple of years later.
And then again.
The same faces. The officers get to know them after a while, which in a way is nice but also terrible.
Image: Sophy Ridge talking to one of the officers who works within Preston Prison
The £18bn spectre of reoffending
We know the stats about reoffending, but it floored me how the system is failing. It’s the same people. Again and again.
The Sentencing Review, which we’re just days away from, will almost certainly recommend fewer people go to prison, introducing more non-custodial or community sentencing and scrapping short sentences that don’t rehabilitate but instead just start people off on the reoffending merry-go-round, like some kind of sick ride.
But they’ll do it on the grounds of cost (reoffending costs £18bn a year, a prison place costs £60,000 a year, community sentences around £4,500 per person).
They’ll do it because prisons are full (one of Keir Starmer’s first acts was being forced to let prisoners out early because there was no space).
If the government wants to be brave, however, it should do it on the grounds of reform, because prison is not working and because there must be a better way.
Image: Inside Preston Prison, Sky News saw first-hand a system truly at breaking point
A cold, hard look
I’ve visited prisons before, as part of my job, but this was different.
Before it felt like a PR exercise, I was taken to one room in a pristine modern prison where prisoners were learning rehabilitation skills.
This time, I felt like I really got under the skin of Preston Prison.
It’s important to say that this is a good prison, run by a thoughtful governor with staff that truly care.
But it’s still bloody hard.
“You have to be able to switch off,” one officer told me, “Because the things you see….”
Staff are stretched and many are inexperienced because of high turnover.
After a while, I understood something that had been nagging me. Why have I been given this access? Why are people being so open with me? This isn’t what usually happens with prisons and journalists.
Please use Chrome browser for a more accessible video player
1:10
Probation centres answer to UK crime?
That’s when I understood.
They want people to know. They want people to know that yes, they do an incredible job and prisons aren’t perfect, but they’re not as bad as you think.
But that’s despite the government, not because of it.
Sometimes the worst thing you can do on limited resources is to work so hard you push yourself to the brink, so the system itself doesn’t break, because then people think ‘well maybe we can continue like this after all… maybe it’s okay’.
But things aren’t okay. When people say the system is at breaking point – this time it isn’t a cliche.
Goldman Sachs-backed cryptocurrency custody firm BitGo is the latest cryptocurrency company to secure regulatory approval to operate across the European Union.
Germany’s financial regulator, the Federal Financial Supervisory Authority (BaFin), granted BitGo Europe a Markets in Crypto-Assets Regulation (MiCA) license to provide digital asset services in the EU, the firm announced on May 12.
The license allows BitGo to offer services to crypto-native firms and traditional finance institutions, including banks and asset managers within the EU.
“This license underscores our commitment to the highest standards of security, transparency, and trust,” BitGo Europe managing director Harald Patt said.
BitGo set up the EU headquarters in 2023
Founded in 2013 in Palo Alto, California, BitGo is a major platform in the cryptocurrency industry specializing in crypto custodial services, holding cryptocurrencies like Bitcoin (BTC) on behalf of its clients.
Since setting up BitGo Europe in Germany, BitGo has received multiple registrations in EU states, including Italy, Spain, Poland and Greece.
“With the MiCA license now secured, BitGo can operate across the entire EU under a unified, forward-looking regulatory framework,” the firm said in the announcement.
“Broad range of institutional-grade solutions”
BitGo did not specify the services it intends to roll out immediately under the new MiCA license.
“BitGo’s MiCA licence comes at a pivotal moment as BitGo expands its product suite to offer a broad range of institutional-grade digital asset solutions,” the announcement added.