The government has accepted the Pay Review Body's recommendation to increase NHS staff pay by 1%.
Health Secretary Jeremy Hunt wrote to the body to accept all of the recommendations in full, which includes a 1% pay rise for all NHS staff on Agenda for Change.
A Department of Health spokesperson said: 'It is thanks to the care, quality and dedication of NHS staff we are beginning to deliver a safer seven day NHS for patients. And in line with the rest of the public sector, we are pleased to announce that all NHS staff will receive a 1% pay increase next year.
'The government has made clear that pay restraint in the public sector continues to be a crucial part of its plans to reduce the deficit. It is because of a strong economy that we are able to invest an additional £10 billion a year by 2020 to support the NHS’ own plan for the future.'
The Royal College of Nursing (RCN) however, says that while it is encouraging that the government has accepted the recommendations the pay uplift will do very little to benefit nurses who have already experienced years of pay restraint.
'As nursing pay has fallen behind by at least 14% in real terms, this decision will do nothing to relieve ongoing issues of staff shortages,' says chief executive Janet Davies.
'Nurses have been telling the government that they are struggling to make ends meet, and are asking themselves if they can afford to continue nursing. Their warnings have repeatedly fallen on deaf ears. The earnings of the people who are looking after us and keeping our health service going have fallen way behind everyone else. Worse, they have fallen way behind inflation.'
Unite has also expressed its disappointment saying that this is 'no way to run the NHS' and says that reduced pay is the reason many are leaving the NHS. 'It is small wonder that the NHS staff are leaving the health service for better pay and work/life balance either in the private sector or abroad. As a consequence, billions of pounds are being spent on agency staff to plug the gaps,' said Unite assistant general secretary for public services, Gail Cartmail.
The Pay Review Body also recommended that the Department of Health took into account the removal of the student nurse bursary and to monitor the number of nurses that are entering the workforce after its removal. Previously the government has rejected a 1% pay rise leading to strikes and industrial action from nurses. The announcement comes just before the Chancellor George Osborne lays out his next budget on 16 March.