Where the words come from
Pay review bodies as independent advisory bodies giving governments evidence-based recommendations on pay for their remit groups; the eight bodies and the groups they cover; remit letters from ministers, written and oral evidence from the parties, independent data and research, a report with recommendations; governments not bound by the recommendations and deciding how to respond; six to eight members appointed through the public appointments process — About Pay Review Bodies (updated 21 July 2023), Office of Manpower Economics, GOV.UK, Crown copyright, Open Government Licence v3.0. https://www.gov.uk/government/publications/pay-review-bodies-and-police-boards-introduction/an-introduction-to-pay-review-bodies-and-police-boards. Changes: Paraphrased and condensed; the list of groups shortened; the opening framing that a pay rise starts with ministers is ours.
National Agenda for Change pay bands, the national local-government pay spine outside London, and National and London pay bands in most government departments; much less geographical variation in NHS and public sector pay than in private pay, which reflects the cost of living and the attractiveness of areas; the Department of Health's evidence that low NHS pay against the local market meant more agency spend, higher turnover, more vacancies and lower quality; NHS Employers' analysis that vacancies and turnover were highest in London and the South East, where private pay was highest; HM Treasury's argument that where private firms had to compete for workers with public employers offering a large pay premium, more local, market-facing pay could help them become more competitive and expand; the review body's view that there was not yet hard evidence of crowding out; the Welsh Government's view that crowding out was most likely where labour markets were tight; high cost area supplements, local recruitment and retention premia, and the Ministry of Justice's pay zones — Market-Facing Pay: How Agenda for Change pay can be made more appropriate to local labour markets, NHS Pay Review Body, Cm 8501 (5 December 2012), GOV.UK, Crown copyright, Open Government Licence v3.0. https://www.gov.uk/government/publications/market-facing-pay-how-agenda-for-change-pay-can-be-made-more-appropriate-to-local-labour-markets and https://assets.publishing.service.gov.uk/media/5a7c38fced915d7d70d1d67b/8501.pdf. Changes: Paraphrased and condensed from the executive summary and paragraphs 2.37 to 2.51 and 3.19 to 3.25; the nurse, Surrey and theatre-staff illustrations, the concept-card wording, the two definitions, the mistake note's reasoning about outside options, and the recap are ours.
A salary below the equilibrium in a labour market creating excess demand, a shortage, with employers wanting to hire more nurses than are willing to work at that salary; higher salaries in one area drawing nurses to it; a salary above equilibrium creating excess supply — Principles of Economics 2e, OpenStax, licensed CC BY 4.0. https://openstax.org/books/principles-economics-2e/pages/4-1-demand-and-supply-at-work-in-labor-markets. Changes: Paraphrased and condensed; the US city, BLS figures and dollar salaries left out; the shortage applied by us to a national public sector rate in a high-pay region; British spelling.
Questions, options, diagrams and feedback are our own. Figures credited to a source above are that source's; every other figure is invented to show the method.