Letter from the Permanent Secretary to the Secretary of State requesting a ministerial direction for the NHS pay settlement
Published 5 May 2023
Applies to England
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From: Sir Chris Wormald, Permanent Secretary
To: Rt Hon Steve Barclay MP
Dear Secretary of State,
You and the department are committed to reaching agreement with the health unions to end the current strike action.
The recent pay negotiations have resulted in an offer being provided to, and accepted by, the Agenda for Change (AfC) unions. However, in doing so, the resulting funding pressure will lead to a breach of the DHSC Group budgets set by Parliament for 2022 to 2023.
As Accounting Officer, I have a duty to adhere to the guidance on ‘Managing Public Money’ provided by HM Treasury and this pay offer will contravene the principle that expenditure is contained within agreed spending budgets.
You, correctly in my view, have concluded that the wider public interest outweighs the considerations of ‘Managing Public Money’ in this case.
To ensure this does not delay our ability to agree a way forward with the unions, I am seeking your confirmation that you wish the department to proceed irrespective of the impact on the department’s compliance with ‘Managing Public Money’.
This letter therefore serves as a formal request for a direction from you to proceed with such expenditure, even though this will mean a breach of Parliamentary financial controls and the requirement for an excess vote; and to make the cash payment ahead of the 2022 to 2023 excess vote.
I am copying this letter to the Treasury Officer of Accounts, the Comptroller and Auditor General, and the Chair of the Public Accounts Committee.
Yours sincerely,
Sir Chris Wormald
Permanent Secretary