Ministers and unions representing nurses, ambulance staff and other NHS workers have completed negotiations and reached a final offer, a Government spokesman has said.
The terms are understood to include a five per cent pay rise for next year, and a bonus of up to six per cent for the current financial year.
The proposal for around one million NHS staff, including nurses, ambulance workers and midwives, has been backed by unions, and will now go to their members for a vote.
The terms are also understood to include a two per cent non-consolidated payment award relating to 2022/23 and a “Covid recovery bonus” averaging around four per cent.
Prime Minister Rishi Sunak said: “I’m really pleased that after several weeks of constructive talks, the government and the Agenda for Change unions have come to an agreement that will provide a fair deal for NHS staff and put disruptive strike action behind us.
“It is right that we reward our hardworking NHS staff, who showed bravery and dedication throughout the pandemic and continue to make phenomenal progress to tackle waiting lists. Importantly this deal is also affordable for the taxpayer and continues to deliver on my promise to halve inflation.
“We have taken a reasonable approach throughout and this offer is good for NHS staff, it’s good for the taxpayer and most importantly it is good news for patients whose care will no longer be disrupted by strike action.”
It comes after a winter of crippling strikes by nurses and ambulance workers.
The walkouts, which began just before Christmas, have seen the cancellation of more than 140,000 operations and appointments, even before junior doctors began a three-day walkout this week.
The proposal for the financial year 2023/24 would mean an average of 5 per cent rise for staff, worth at least £1,065.
Unions including The Royal College of Nursing (RCN) and the GMB Union have backed the offer which will now be put to members for a vote.
Earlier this year, the Department of Health and Care recommended a rise of 3.5 per cent for 2023/24, as had the Treasury.
The proposals relate to around 1 million staff on “Agenda for Change” contracts which cover nurses, ambulance workers, porters, cleaners and other workers.
They do not affect doctors, who have just ended a 72-hour-walkout, as part of a British Medical Association campaign for pay rises of 35 per cent.
The RCN, UNISON, GMB, CSP and BDA – will recommend the offer to their members in consultations that will be held over the coming weeks. Strike action will continue to be paused while they are consulted.
Under the deal, around 1 million staff will receive a non-consolidated award of 2% of an individuals’ salary for 2022/23.
This is on top of the pay increase of at least 4% they received for 2022/23 last year, as recommended by the independent Pay Review Body process, worth at least £1,400.
In addition all staff will receive a one off “NHS Backlog Bonus” the Government said, saying this “recognises the sustained pressure facing the NHS following the pandemic and the extraordinary effort staff have been making to hit backlog recovery targets and meet the Prime Minister’s promise to cut waiting lists.”
This bonus will be worth at least £1,250 per person but will depend on pay bands and experience, with a bonus of £1,350 for a nurse starting out.
For 2023/24, the government is offering Agenda for Change staff a 5 per cent consolidated increase in pay, worth at least £1,065.
Officials said the package would mean a newly qualified nurse will see their salary go up by more than £2,750 over two years from 2021/22 to 2023/24.
On top of this they will also receive over £1,890 in one-off payments this year.
Health and Social Care Secretary Steve Barclay said: “I hugely admire the incredible work of NHS staff, including during the pandemic and the progress they have made to tackle the resulting backlog.
“This offer will give nurses, paramedics, physiotherapists and other non-medical staff a fair pay rise while protecting our commitment to halve inflation.
“We have engaged in constructive and meaningful discussions with unions and NHS Employers and I look forward to continuing our work together to make the NHS a better place to work.”
