Funding for non NHS-organisations for one-off payments

Press release from Department of Health and Social Care and Will Quince MP

Funding for non NHS-organisations for one-off payments - GOV.UK (www.gov.uk)

• Payments were agreed as part of NHS pay award between government and unions which also gave over one million staff a 5% pay rise in 2023 to 2024

• Government has stepped in to help independent organisations deliver the payments, on this occasion

Eligible healthcare staff at non-NHS organisations such as charities, local authorities or social enterprises will benefit from government funding to cover the cost of their one-off payments as part of the NHS pay award, worth at least £1,655.

It comes after the NHS pay deal, agreed between government and unions in May, saw over one million staff including nurses, paramedics and 999 call handlers receive a 5% pay rise for 2023 to 2024, backdated to April, alongside two one-off payments worth between £1,655 and £3,789 for full-time staff.

The government has agreed to provide additional funding for organisations with contracts to deliver NHS services, who employ their staff on dynamically linked Agenda for Change contracts. Whilst these staff are contractually eligible for the payments, the independent organisations are responsible for making them.

The department has however listened to concerns around providing the payments in the current economic circumstances and so will make funding available to help deliver them, on this occasion.

Health Minister Will Quince said:

Given the difficult economic context we have made the decision to provide additional funding on this occasion to help deliver the one-off payments to eligible staff employed by non-NHS organisations. This will ensure hardworking healthcare staff and the organisations they work for are not financially disadvantaged as a result of the NHS pay deal, and means they will receive their backlog bonus for their efforts during the pandemic.

Organisations will be able to apply for the funding and will need to show they have been negatively financially impacted by the pay deal, and that their staff are employed on dynamically linked Agenda for Change contracts.

Many organisations have already delivered the one-off payments to staff but can apply to be reimbursed to ensure there is no impact on vital frontline services.

The scheme, which will be funded from existing departmental budgets, will open in the coming weeks, and is expected to be completed by the end of the 2023 to 2024 financial year.  

As a result of the pay award, a newly qualified nurse has seen their salary go up by more than £2,750 over two years from 2021 to 2022 and 2023 to 2024, alongside over £1,890 in one-off payments this year.

Non-NHS organisations commissioned by the NHS have, where eligible, already been funded for the consolidated 5% uplift under the terms of existing contracts.

Background information

Dynamically linked contracts are kept in line with the national Agenda for Change contract, so they automatically reflect any changes/uplifts.

The NHS pay deal, agreed by NHS Staff Council in May, included two non-consolidated pay awards for 2022 to 2023. These non-consolidated payments covered staff directly employed by NHS organisations (for example, permanent and fixed term contracts) as set out in Annex 1 of the handbook on Agenda for Change terms on 31 March 2023. However, some staff in non-Annex 1 organisations are contractually entitled to the payments, and therefore their employers were responsible for making these payments.

The Department cannot confirm the costs of this scheme until all applications have been received and assessed in line with the criteria and guidance set out by NHS England.