Dean Royles, director of the NHS Employers organisation urged unions to show flexibility, particularly on pay progression and sickness pay.

BBC: Nurses leaders warn regional pay plan would harm care

Teachers' pay rises have previously reflected length of service, but there will now be a stronger link between achievement and pay progression.

BBC: Teachers' performance pay on pupil progress

He acknowledged a 1% cap was "tough" but said many public sector workers would be helped by "pay progression" - annual increases in salary grades - even when pay was frozen.

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