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GPs to pay pension scheme levy as DH pushes ahead with plans

The Government is set to go ahead with plans for NHS employers to pay a levy for managing the NHS pension scheme.

The cost to GP practices is estimated to be an average of £23 per employee who is a scheme member but the GPC has negotiated for this to be refunded as part of the 2017/18 GP contract uplift.

The Government intends to raise £35m a year via the levy, to pay for the administrative work relating to handling of pension contributions on behalf of employers.

In responding to opinions expressed during a consultation that closed in January, the Department of Health said that  'whilst the levy might appear to create an unnecessary financial loop, it serves to more precisely lodge the cost with those to whom the benefit accrues'.

It added that in considering the levy, NHS England had 'recognised the impact for GP practices and factored that in as part of the additional expenses uplift in the 2017/18 contract negotiations'.

The consultation response concluded: 'The Department will proceed to introduce a levy of 0.08% of pensionable pay from 1 April 2017. Scheme regulations will be finalised and laid before Parliament in March.

'The levy will be collected at the same time as the standard employer contribution. In practical terms this means the employer contribution rate will increase from 14.3% to 14.38% from 1 April 2017.'

 

Readers' comments (4)

  • And how exactly is this paid for now? Are the politicians going to pay a charge for their scheme? If not once again discrimination.

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  • If this is to be "fully refunded" then why on earth charge us in the first place?? A cynic might suggest that HMG will bury the (hopelessly inadequate) reimbursement so deep in the figures that we won't realise we've been stiffed.......again.
    For example, why bill us for CQC then fully refund it? Huge administration costs with no apparent gain? It only makes sense if we're being hoodwinked and swindled. But that could never happen....could it?

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  • If it is for those that will benefit cost should go to the employees not ers

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  • I'm surprised this wasn't a fee that we have to apply to have reimbursed similar to CQC, water and business rates.

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