It reaffirms the decoupling of average pay from inflation, recruitment and retention rates - until at least 2020. One wonders if the damage will be recoverable from that point, even if the cap is relaxed.
Anyway, I do like the humour in a note that refers to independent advice on pay, as long as the independent answer is 1%. Not applying a 1% rise in one area will provide very little additional headroom in pinch-point areas and I wonder if the corrosive effect it would make it worthwhile.