Unions have announced that they will suspend this week's industrial action, after health secretary Jeremy Hunt and the DH have offered a compromise on NHS pay conditions.
The offer includes a consolidated one per cent payment for all staff up to band 8B and an additional £200 consolidated payment for lower paid staff on pay points three to eight. The first point on the pay scale will be abolished and the second will be raised to £15,100.
The DH also said that the NHS Pay Review Body will continue to make future recommendations on pay rises for NHS staff in 2016-17 and in the future.
The announcement comes after a series of discussions with Mr Hunt at the end of last week and early this week.
Cathy Warwick, chief executive of the Royal College of Midwives, said: 'I believe this offer represents the best that can be achieved by negotiations and we will consult with members in England.'
UNISON head of health and the unions' lead negotiator Christina McAnea said: 'This isn't a great offer but it addresses some of the key concerns unions have about low pay in the NHS. In the interest of patients' safety unions will now consult members.'
Unite assistant general secretary Gail Cartmail said: 'Following talks we have suspended industrial action and called off Thursday's strike to consult with our members over the coming days. The offer moves the NHS towards becoming a living wage employer and begins to address issues around low pay. Members will decide on whether to accept or reject the offer of what we believe it is the best that can be achieved by negotiation.'
Dr Peter Carter, chief executive of the RCN said: 'This decision goes some way to alleviate the concerns of staff by honouring the independent pay review body's recommendation for a one per cent consolidated rise and helping some of the lowest paid NHS staff.'
The trade unions have also committed to further talks about reforming Agenda for Change which could be implemented from April 2016. Unions had planned to hold a day of industrial action on 29 January to protest the NHS pay freeze,
followed by a 24 hour strike on 25 February. This followed on from a series of strikes carried out at the end of last year.The unions will now consult their members on whether to accept the deal.