As part of the 2025-26 and 2026-27 pay settlement, there is a guarantee that each year’s uplift will be at least 1 percentage point higher than average CPI inflation. The pay settlement provides an uplift of 4.25% in 2025-26, and 3.75% in 2026-27. (See NHS Circular PCS(AFC)2025/5 for full details of the settlement and the Inflation Guarantee)
The table below illustrates what the inflation guarantee payment would be relative to different rates of cumulative CPI inflation over the corresponding period.
The table below tracks average inflation between January and December 2025. It will be updated in a timely manner following each inflation release from the ONS.
* Rounded to one decimal place, consistent with ONS CPI inflation figure.