The 3.3% Agenda for Change pay award for 2026/27 was confirmed on 12 February 2026, effective 1 April 2026. Here's what that means in pounds and pence for each band — and why the actual take-home increase is always smaller than the headline percentage.
The 3.3% Award — Context
This award follows the 3.6% uplift in 2025/26 and the 5.5% award in 2024/25. The 3.3% is a consolidated increase — it permanently raises the pay scales, unlike one-off bonuses seen in earlier years. With UK CPI running at around 2.5–3% in early 2026, this represents a modest real-terms increase for most NHS staff for the second consecutive year.
The award was recommended by the NHS Pay Review Body (NHSPRB) following evidence submissions from unions (including RCN, UNISON, Unite), NHS Employers, and the Department of Health and Social Care. The government accepted the recommendation in full.
New 2026/27 Salaries — What Changed
| Band | 2025/26 Salary | 2026/27 Salary | Annual Increase | ~Monthly Gross Increase |
|---|---|---|---|---|
| Band 2 | £24,465 | £25,272 | +£807 | +£67 |
| Band 3 | £24,937 | £25,760 | +£823 | +£69 |
| Band 4 | £27,485 | £28,392 | +£907 | +£76 |
| Band 5 | £31,049 | £32,073 | +£1,024 | +£85 |
| Band 6 | £38,682 | £39,959 | +£1,277 | +£106 |
| Band 7 | £47,810 | £49,387 | +£1,577 | +£131 |
| Band 8a | £55,690 | £57,528 | +£1,838 | +£153 |
| Band 8b | £64,455 | £66,582 | +£2,127 | +£177 |
| Band 9 | £109,179 | £112,782 | +£3,603 | +£300 |
Why Your Monthly Take-Home Increase Is Smaller Than Expected
A 3.3% pay rise on £32,073 adds £1,024/year — or £85/month gross. But the actual take-home increase is smaller due to deductions on every extra pound earned:
• Income Tax: 20p per £1 basic rate (40p for higher rate taxpayers)
• National Insurance: 8p per £1 on increase (2p above upper earnings limit)
• NHS Pension: 8.3p–12.5p per £1 depending on tier
For a basic rate taxpayer at Band 5 entry, total deductions are approximately 36.3p per £1 of increase — meaning only 63.7p of each extra gross pound reaches your bank account.
Real Take-Home Increase by Band
| Band | Monthly Gross Increase | Deductions on Increase | ~Monthly Net Increase |
|---|---|---|---|
| Band 2 | +£67 | -£24 | ~£43 |
| Band 3 | +£69 | -£25 | ~£44 |
| Band 4 | +£76 | -£28 | ~£48 |
| Band 5 | +£85 | -£32 | ~£53 |
| Band 6 | +£106 | -£40 | ~£66 |
| Band 7 | +£131 | -£66 | ~£65 |
| Band 8a | +£153 | -£82 | ~£71 |
Band 7+ staff see a higher deduction rate because more of the increase falls into the higher rate tax bracket and higher pension tier.
ℹ️The Real Take-Home Increase at Band 5 Entry — A Band 5 nurse at entry sees roughly 37p of every £1 gross increase disappear in deductions. Their monthly take-home goes up by approximately £53/month — not the £85 gross headline figure.
⚠️Pension Tier Traps to Watch — The 3.3% award pushes some staff over pension tier thresholds — meaning they suddenly pay a higher pension rate on their entire salary, not just the increment. Staff whose 2025/26 salary was just below £28,854 (the 6.5%→8.3% threshold) may find their pay rise costs them extra in pension on top of the increase.
How the 3.3% Compares to Recent Awards
| Year | Award | CPI at Time | Real-Terms Change |
|---|---|---|---|
| 2021/22 | 3.0% | 6.0% | -3.0% (real cut) |
| 2022/23 | ~4% + supplements | 11.0% | -7.0% (real cut) |
| 2023/24 | 5% + £1,035 | 6.7% | -0.5% (real cut) |
| 2024/25 | 5.5% | 3.2% | +1.0% (real gain) |
| 2025/26 | 3.6% | 2.6% | +0.5% (real gain) |
| 2026/27 | 3.3% | 1.7% | +1.6% (real gain) |
2026/27 is the third consecutive year of real-terms pay growth — the first time this has happened since the 2018 three-year deal.
Scotland's Separate Pay Deal
Scottish NHS staff negotiate separately through the Scottish Government. The 2026/27 Scottish award and implementation date may differ from England. Scottish staff also benefit from a reduced working week (moving to 36 hours from April 2026) which further affects the effective hourly rate increase.
The Scottish two-year deal (2024/25 + 2025/26) gave 8% total over two years. The 2026/27 Scottish deal is being negotiated separately and is expected to be announced by spring 2026.
What the Award Means for Your Pension
The 3.3% pay rise also increases your pensionable pay — which means:
1. Your pension contributions increase (costing more now)
2. Your pension accrual increases (worth more in retirement)
3. Your employer's 23.7% contribution increases (more pension investment)
For a Band 5 nurse, the 3.3% increase adds approximately £594 × 1.033 = £614 in pension accrual for 2026/27 (up from £594 in 2015 scheme). Over a 30-year career, even small annual increases in accrual compound significantly.