Union Unite today began balloting NHS members on the current three-year pay deal. The ballot will ask 100,000 members if they are prepared to take industrial action, including strike action, in protest at the pay deal.

The union says the current package of 8 per cent over three years - a pay increase of 2.75 per cent from April, followed by further increases of 2.4 per cent in 2009-10 and 2.25 per cent in 2010-11 - is worth half the current rate of inflation, which this month rose above 5 per cent.

Unite national officer for health David Fleming said: "I appreciate we are living through very difficult economic times, but that is no excuse for dedicated and hard working staff to be penalised by derisory pay awards. Most reputable economists agree public sector pay is not the engine of inflation so ministers can't use that argument to batten down the hatches with unreasonable pay awards."

The ballot closes on 12 November.