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GP pay down as practices' running costs spiral

By Emma Wilkinson

Average GP pay fell by 2.1% last year as practices struggled to maintain running costs, figures from the NHS Information Centre show today.

Contractor GPs saw their pre-tax earnings fall to £107,667 in 2006/07, according to initial results from the GP Earnings and Expenses Enquiry.

A breakdown of the figures showed a small, one per cent rise in total pay was undermined by a 3.5 per cent rise in overheads.

GPs paid an average of £139,694 to run their practices last year – a situation set to be worsened by the credit crunch.

Country-by-country analysis showed GPs in Northern Ireland and Wales suffered particularly large drops in earnings at 5.4 per cent and 4.3 per cent respectively.

The figures come just as a radical overhaul of the contract was announced by NHS Employers.

Under plans agreed by the GPC, 2009/10 will see the QOF reduced as a proportion of pay, the square root formula scrapped and moves begun to phase out the MPIG.

A new formula for ‘differential uplift' of the various components of the GMS contract will be applied but negotiations on the size of the uplift are ongoing.

GP pay has not kept pace with spiralling overheads GP pay has not kept pace with spiralling overheads

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