The starting salary for police constables is being cut by £4,000 to £19,000, the home secretary has confirmed.
Theresa May has accepted recommendations on reform made by the Police Arbitration Tribunal.
It follows proposals put forward last year by former rail regulator Tom Winsor for an overhaul of police pay, conditions and allowances.
A review by Mr Winsor recommended £1bn could be cut from police pay.
Mr Winsor was the author of a controversial review on police pay and was appointed last year as the Chief Inspector of Constabulary for England and Wales, the first non-policeman named to the post.
Mrs May has deferred plans to bring in compulsory severance across all ranks to allow for further negotiation.
She said: "These reforms build on the changes we implemented [in January last year].
'Modernise pay'"They continue our programme to modernise police pay and conditions so that they are fair to both officers and the taxpayer. They include measures to retarget pay to reward contribution, increase local flexibility and make important structural changes to enable further reform."
The Association of Chief Police Officers' (Acpo) lead on workforce development, chief constable Peter Fahy, said: "In a service where over 80% of budget is spent on people, it is more vital than ever that we have terms and conditions for all staff that both reward them for what they do and represent value for money.
"Acpo was concerned about the starting salaries range proposed and the outcome of these negotiations means that chief constables will now have the flexibility to pay a starting salary of up to £22,000 depending on skills and qualifications. Officers can also reach the top rate of pay three years earlier than under the current arrangements."
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