Final pays control update

1. To increase the allowable growth from CPI 4.5% to CPI +7.0%
2. To exempt pay increases that are in line with changes in NHS terms and conditions formally approved by the Secretary of State e.g. pay rises under national agreed contracts
3. To exempt pay rises that result from National Clinical Excellence Awards
4. To exclude pay rises from promotions where these are on the basis of fair and open competition
5. To reform rules for non-GP partners to remove profits increases where profit sharing percentages have not changed or where they have only changed due to changes in the partnership composition.

In addition, charges notified after 1 April 2018 can be redetermined to take account of the new proposals. Changes to pay or profits outside of these exemptions will still be liable to Final Pay Controls so practices still need to be careful.

This is a very positive proposal and should remove legitimate pay increases from being subject to a charge although still providing the Pension Scheme with some protection from artificial pay rises designed to maximise pension benefits on retirement.

Practices impacted will also be able to review charges retrospectively.

The consultation ends on 9 April 2021 and details can be found here.

Written by Elaine Mitchell, Healthcare Client Director

Get in touch

If you would like to find out more about how we can help, please contact us and a member of the team will be in touch.

Contact us today