Workers throughout the NHS are to receive substantial pay rises in return for undergoing radical ob evaluationreviews over the next three years.

The Government is now said to be finalising negotiations with health unions representing nurses, technicians and ambulance staff.

The rationalised pay structure will replace a number of separate schemes, which have been called archaic by both the unions and the Government.

Health Secretary Alan Milburn refused to confirm details of the deal, telling the BBC: "Negotiations are still ongoing", but added: "We are prepared to pay more, but wee got to get more".

The deal is likely to introduce a number of significant reforms to working practices, such as keeping operating theatres open 24 hours a day to maximise capacity and tackle waiting lists.

The deal is particularly crucial to long-serving nurses, whose professional progress can be halted at the top of their grade, and these key members of staff will now earn pay rises to reflect their experience.

If approved in consultation the system will be piloted in 12 sites next April, and then extended nationwide in 2004.

Dan Hodges of the GMB union said the increased pay was linked to modernisation, but said it could spell the end to long-running battles over pay.

"It would definitely be a step forward and a basis for a long-term agreement", he told the BBC Radio 4 Today programme.

"Obviously though, there is still a deficit to be made up, because many health workers remain the lowest paid in the country, and still do a very difficult job".

The talks will not affect the on-going negotiations to produce new contracts for consultants and doctors, which have proven to be more difficult for the Government.

Consultants voted to reject the Government offer last month, and crisis talks are now being held to break the stalemate that has developed over workload and performance targets.

Meanwhile, the second and decisive vote on the new GP contract could be delayed beyond the April deadline.

The BMA's General Practice Committee has said the Department of Health is holding back the talks by not supplying key data on how much money GPs can expect for practice resources such as fees, allowances and reimbursements for staff costs.

pharmafocus@pharmafile.co.uk