He said this and other measures, including raising the state pension age to 67, will ‘reduce spending permanently in the medium and long-term and make the fiscal position more sustainable’.
But the announcement could have a knock-on effect on GP pay awards. In freezing GP pay in the previous two years the DoH has said the decision was made in light of the wider public pay freeze.
Mr Osborne called for a two-year pay freeze on all public sector workers earning more than £21,000 in his 2010 Budget, with the change largely coming into effect in April 2011.
Details of the 2012/13 GP pay award were announced earlier this month.