Chelsea and Westminster predicts pay inflation will cost an extra £3.4m next year

Figures it gave in the annual plan review it submitted to Monitor showed staff costs rising by £3.4m in each of the next two financial years.

The APR said: “The trust is anticipating that after the second year of the national pay freeze during 2012-13 there will be annual pay awards of no more than one per cent per annum but that this will be in conjunction with incremental increases in levels of pay as a result of increased seniority of staff.”