NHS Pay Rise 2026/27: Salary Increase & Pay Award Explained
It feels like we just finished talking about the last pay deal, and here we are again. The government has made an early move, announcing a 3.3% NHS salary increase for staff this April. But does it go far enough? Here is everything you need to know about the 2026 pay award, the debate, and critically, what it means for your bank balance.
The headline figure is officially confirmed: the government expects to deliver an average 3.3% NHS pay rise for Agenda for Change staff in England for the 2026/27 financial year.
While an early announcement avoids the frustrating delays of previous years, the figure itself has sparked immediate and intense debate among unions. Let's cut through the noise and look at the facts of the NHS pay award 2026, what it means for your bank balance, and what the unions are planning next.
Breaking News: Alongside the 3.3% rise, the government is launching a structural grading review specifically for Band 5 roles which will result in backdated salary uplifts.Read our full guide on the Band 5 Nursing Pay Reform here.
The Benchmark: 2025/26 NHS Pay Award Recap
To understand the new NHS salary increase, we first need to look at what was implemented last year.
England (Agenda for Change)
Staff received a 3.6% increase.
- Band 2 salary: £24,465
- Band 5 nurse salary: ~£31,050
Scotland
NHS staff in Scotland secured a slightly higher deal of roughly 4.4% total.
What is the NHS Pay Rise for 2026/27?
The NHS pay rise for 2026/27 is 3.3%, effective from April 1st, 2026.
New 2026/27 Salary Rates (Estimated)
| Band & Experience | 2025/26 Pay | New 2026/27 Pay | Annual Increase |
|---|---|---|---|
| Band 2 (Top) | £23,615 | £24,394 | +£779 |
| Band 3 (Top) | £25,674 | £26,521 | +£847 |
| Band 5 (Entry) - Nurse | £29,970 | £30,959 | +£989 |
| Band 6 (Entry) | £37,338 | £38,570 | +£1,232 |
| Band 7 (Top) | £52,809 | £54,552 | +£1,743 |
The "Fiscal Drag" Warning
A key detail often missed in pay announcements is the interaction with tax brackets. The Personal Allowance remains frozen at £12,570, and the Higher Rate threshold sits at £50,270.
- Band 5 & 6: Most of your increase will be taxed at the basic rate (20% + NI), meaning you keep roughly 70% of the rise.
- Band 7 & 8: For those at the top of Band 7 and above, your salary already exceeds £50,270 (or will do now). This means the entirety of your £1,700+ increase will likely be taxed at 40%.
London Weighting & Supplements
The 3.3% increase typically applies to High Cost Area Supplements (HCAS) as well. We project the new minimum and maximum payments for Inner London will rise to approximately £5,499 and £8,352 respectively.
This represents a real-terms increase of approximately 1% above the OBR's inflation forecast. For specific roles, this would take the Band 2 NHS salary 2026 to around £25,270 and the starting NHS Band 5 salary 2026 to approximately £32,000.
The Government's Argument
Ministers are framing this as an "above-inflation" rise. They are betting on forecasts from the Office for Budget Responsibility (OBR), which predicts inflation will drop to roughly 2.2% over the coming year. If that happens, you technically get a "real" pay rise. But that is a big "if."
Why Unions Are Calling It an "Insult"
Unions, including the RCN and Unison, have reacted strongly against the 3.3% figure. Their argument is straightforward: your bills are rising faster than that right now.
At the time of the announcement, inflation was tracking around 3.4%. Unions argue that basing a pay rise on a future guess of 2.2% is risky. If inflation stays high, this "pay rise" could feel like a pay cut in real terms.
📅 Timeline: When Will I Get Paid?
Unlike previous years where pay deals dragged on until late summer, this early announcement aims to get money into pockets on time.
- February 2026: Announcement made by the Pay Review Body and Government.
- March 2026: Unions like the RCN and Unison will consult members. Watch out for "indicative votes" on whether to accept or reject the 3.3%.
- April 1, 2026: The new pay year officially begins.
- End of April 2026: If the deal is accepted without industrial action, you should see the new rate in your April payslip—avoiding the need for confusing backpay calculations later in the year.
NHS Pay Across the UK
- Scotland NHS Pay 2026: A multi-year deal is already in place here, guaranteeing a 3.75% rise for 2026/27.
- Resident Doctors: Formerly known as "Junior Doctors," this group is on a separate negotiation track.
Calculate Your 2026 NHS Pay Rise
Percentages can be abstract. Does 3.3% cover your rent increase? Use our NHS pay calculator 2026 to see exactly what the new deal looks like for your monthly budget.
Calculate My New NHS Pay (2026)