Restoring the uprating of public sector pay in line with inflation is long overdue. (It should be recalled that if David Cameron and George Osborne had had their way, there would have been no pay rises for nurses etc. at all. It was only pressure from their Liberal Democrat coalition partners which forced the concession of 1% pay rises.)
Apart from the inherent justice of the policy, there will be practical benefits. It should improve morale. It might keep more directly-employed nurses in the service, reducing the need to pay over-the-odds to agencies for temps.
It might even encourage the Labour-run Welsh Assembly government to level up pay for junior nurses in the principality. I was shocked to discover, that for all Carwyn Jones' criticism of regional pay, junior nurses in Wales are paid less than in England (in Scotland, they are paid more.) The Royal College of Nurses pay scale tables are here.