If your first day of retirement falls on a weekend or bank holiday, your lump sum will be paid on the first available banking day. We believe that the proposed deal is the best we could achieve by negotiation so members need to be aware that if the outcome of union consultations is for the unions to reject the deal, it is unlikely that the government will agree to re-open talks. Find current NHS Agenda for Change Pay Rates (April 1st 2020 to March 31st 2021). And from 1 December 2018 band 1 would be closed and new staff would be recruited straight into band 2 jobs. In other words, it will be a one-off "bonus" payment that will not increase the salary level beyond the year of payment. The unions believe that the overall balance of the package delivers real gains for NHS staff currently in the service and will make working in the NHS more attractive for the new recruits we so desperately need to attract. Follow the simple steps below and then click the 'Calculate' button to see the results. The minimum and maximum thresholds for each tier of HCAS will be uplifted by the headline top-of-band consolidated awards for each year. Pay in the NHS has fallen further behind comparator occupations, and the financial pressure on staff, and damage to morale, are making existing staffing shortages considerably worse. NHS Pay in Wales/Cymru. Finally, for current ambulance staff there will be an individual choice as to whether to continue with the unsocial hours entitlements in annex 5 of the NHS terms and Conditions handbook or to switch to the system that applies to all other staff in section 2 of the handbook. But in a year where staff did get them, they would be worth more. The proposals we have negotiated would provide a mixture of annual pay awards, a top-of-band lump sum, incremental progression and improvements to the pay structure. There was unfinished business including pay bands that were too long, overlaps between bands, and points which were too close together. I have to decide wether to go for bigger lump sum/smaller pension, or smaller lump sum/bigger pension. The Treasury has committed to providing £4.2 billion of new money to pay for the deal. For some staff the gain over three years is quite small. Where employers have arrangements in place as a result of the 2013 changes, progression can be withheld where staff are not meeting the required standards. Unions demand 3.9% pay rise for NHS plus £800 lump sum; Plans to end pay cap ‘must make up for lost nurse earnings’ According to the survey, 69% of the public supported NHS staff being paid an extra £800 on top of a pay increase that is in line with RPI inflation. That means that the proposals give greater increases over the three years to those staff at or near the bottom of the pay bands. The most important figure for you to look at is your total gain at the end of the three years. • For staff at the top of bands 8d and 9 their basic pay increase and their one-off non-consolidated lump sum will be capped at the level of the increase for the top of band 8c. These issues have been made worse by eight years of pay restraint. Comunicación Social Pay bands for NHS staff to see the next increment or years pay of employment, plus an estimated calculation of tax, national insurance and pension contributions. For staff in bands 4-9 unsocial hours payments would be completely unaffected and continue to be calculated as now. Finally, the proposed agreement would introduce a new system for pay progression – coming in from April 2019 – which will mainly affect new staff and those who get promoted. In the new structure these pay points will not exist anymore. Taking a tax-free lump sum. Lump sum payments will be credited to your account after 2pm on your first day of retirement. There would be no fundamental changes to unsocial hours payments. For health workers already at the top of their band, most would get 6.5% between April 2018 and April 2020. 1,140 posts. We have also agreed to have further negotiations on new entitlements, to be added to the NHS terms and conditions handbook covering child bereavement leave, enhanced shared parental leave, and a national framework for buying and selling of some annual leave. It is also a big step forward in ending low pay in the NHS. The unions remain committed to preserving the Agenda for Change pay framework across the UK and to seeking levelling up where pay rates have diverged. All staff would get a meaningful pay rise – in every case more than they could expect under the current system of incremental progression and annual awards capped at 1%. A number of nurses have discovered it will take up to 60 days for their initial lump sums to be processed not the 30 days advertised. Current ambulance staff would be given an individual choice between their existing arrangements or the system that applies in the rest of the NHS. • Staff employed on the top of their band on 31 March 2019 will receive a one-off 1.1 per cent non-consolidated lump sum cash payment. NHS hospital chiefs have received £35million worth of pay rises in the last year – with some bosses at the worst-performing hospitals raking in the equivalent of £5,000 a DAY, it has emerged. These changes have the effect of preserving the cash value of unsocial hours while the pay restructuring takes place, but stop any leapfrogging effects where staff in lower bands end up earning more than those in the next band up for the same unsocial hours shift. Jude Diggins 3 May 2018 London Pay. The UK government has been urged to implement a pay rise for NHS workers by a group of leading trade unions. The combination of these changes would mean increases ranging between 9% and 29% over the three years as we help more people reach the rate for the job more quickly. There are no fundamental changes to unsocial hours in these proposals. The figure of 6.5% is a minimum and the lowest paid NHS staff can expect a maximum pay rise of up to 29% over the next three years. For nearly a decade the government has restricted NHS pay to below inflation. The proposals we have negotiated would provide a mixture of annual pay awards, a top-of-band lump sum, incremental progression and improvements to the pay structure. The current arrangements for calculating HCAS remain unchanged. Unlike elsewhere, these pay proposals are separately funded – they will not be financed from existing NHS budgets and therefore will not come at the expense of patient services. If you have already taken the maximum tax free lump sum you may incur a lifetime allowance tax charge on any second bite lump sum paid. • 1.7% in 2019/20 plus a lump sum worth 1.1% paid in April 2019 • 1.7% in 2020/21. If you move to the 2008 section as part of the NHS Pension Choice Exercise, when you retire, you must take a lump sum. The proposed agreement applies to England only, at least for now. So, for example, an employee at the top of band 2 currently gets an unsocial hours payment for work on a Saturday of time plus 44%, which is £4.09 an hour extra. Band 2 Point 3 - Current pay £15,671 (second point in band)Increase over three years (current arrangements) £1,811 / 12%Increase over three years (pay offer) £3,666 / 23%, Band 7 Point 34 - Current pay £41,787 (top of band)Increase over three years (current arrangements) £1,266 / 3%Increase over three years (pay offer) £2,716 / 6.5% (plus a £437 lump sum), Band 6 Point 24 - Current pay £29,626 (3 years in job, or paramedic transferred from top of Band 5)Increase over three years (current arrangements) £4,097 / 13.8%Increase over three years (pay offer) £4,153 / 14%Increase over four years £8,264+ / 28%+. All but the very highest paid staff would get 3% in April 2018, 1.7% and a 1.1% lump sum in April 2019, and 1.7% from April 2020. The £4.2billion the Treasury has said they will provide is conditional on the deal being accepted. The NHS has several different pension schemes in operation at the moment – the 1995, 2008 and 2015 schemes, with each one having different provisions. This is known as ‘commutation’ and, under current tax rules, you can take a maximum of 25% of the value of your pension fund tax-free. The rises break decisively through the one per cent pay ceiling experienced by CSP members since 2010 and they are considerably better than any other pay deal in the public sector for many years. Subject to performance, you will keep your basic salary or your employer will reduce your salary by 5 or 10 per cent. The unions are talking separately to devolved governments and employers about how they could draw on the England agreement to put together a package that might work in their own countries. The trade unions insisted on a clause in the draft agreement confirming that the NHS Pay Review Body will monitor implementation of the agreement and that parties will be able to go to the PRB with concerns about how it is panning out in practice. Use the pay calculator on this website. Welsh NHS staff are being given details of an improved pay offer that's led Unison to call off a half-day strike planned for Monday. This will be paid in April. As a result most terms and conditions – including annual leave – remain unchanged. This is particularly the case for the key shortage professions, and for lower paid staff where the NHS is struggling to compete because of the rising National Minimum Wage and increasing number of living wage employers in other sectors. You may convert part of your pension to provide for a lump sum. The NHS trade unions have been in detailed negotiations with employers and the government to get you a better pay deal. Instead of being based on the old pay points, eligibility for the payment of unsocial hours during sick leave would apply to salaries up to £18,160. In 2018/19, this will only be the case for those who were previously on the bottom pay point. But the other side comes to the table with a very different set of demands. Around half of all current staff are already at the top of their band. From 1 April 2020 further restructuring of the pay … In addition, the employers wanted provision in the agreement for joint partnership work at national and local to improve staff health and well-being through measures to reduce sickness levels. This is because they mean that staff doing a job that evaluates higher can, for a period, get paid the same or less than someone in a job that evaluates lower. Above all it would deliver the longer-term reforms to the pay structure we have been working for since 2015, and would give staff some certainty – in increasingly uncertain times – about what will happen to their pay over the next few years. In future those earning up to this cash amount will still get the unsocial hours in sick pay. Inflation is forecast to keep coming down over the next couple of years but we all know that these are very uncertain times for the economy, not least because the effects of EU exit are not yet known. A million NHS workers demand inflation-busting 3.9% pay rise as pressure mounts on ministers to scrap the public sector cap for ALL health staff Leaders of … Staff employed on the top pay point in their pay band on 31 March 2019 shall receive a one off non-consolidated cash lump sum in their April 2019 pay. The offer includes a major reform of the pay system with agreement to get most staff to the top of their bands faster than under current arrangements. I am 60 in Feb 2011 I will have 22 yrs 1995 pension - I don't want to change to the new 2008 pension, i'm looking at claiming the lump sum and pension. Since then the trade unions have been pushing their agenda for improving the rate for the job at the top of pay bands – to ensure payment of at least the real living wage, improve starting salaries, remove overlaps between bands and reduce how long it takes to reach the top of bands. The pay proposals should help the employers improve recruitment of staff. This would require all employers to follow what some have been doing since 2013, in linking pay progression to appraisals so that increments no longer happen automatically. These arrangements build on the current system whereby the top two increments (worth about 5% each) are re-earnable. When Agenda for Change was first agreed over 13 years ago it was far from perfect. In the subsequent two years it will affect more pay points.Staff will retain their existing incremental date throughout transition. If you are already employed in the NHS, the pay point you are on will move as set out in the journeys’ document. Staff who are already on a pay point at the time it is to be removed will be immediately moved to the next available point, even where this does not coincide with their existing incremental date. It’s now over a month since the NHS Pay deal was announced. One million NHS staff across England to get a pay rise Over a million hospital cleaners, nurses, security guards, physiotherapists, emergency call handlers, paramedics, midwives, radiographers and other NHS staff across England will now benefit from a three-year pay deal, say health unions today (Friday). lump sum cash payment capped at the value of the payment for staff at the top of band 8c. Throughout the negotiations, the trade unions have sought to cover every eventuality and we are confident that the proposed deal would deliver real gains for every member of staff compared with the existing policy of pay awards capped at 1% and any incremental progression due. The value of this lump sum for staff on bands 2 – 8c will be 1.1 per cent of the value of the top pay point in the individual’s pay band. The value of this lump sum for staff on bands 2 – 8c will be 1.1 per cent of the value of the top pay point in the individual’s pay band. In addition, he claimed that he and others had been labelled “deluded” by senior RCN staff for opposing the deal. The national agreement provisions on managing sickness absence would be reviewed as part of that work. If you are on the top of pay band 8d you will get 5.4% over three years (rather than 6.5%) plus the same 1.1% lump sum as other staff in 2019. So, the proposal is that eligibility for unsocial hours in sick pay will be pegged to the current value of pay point 8 – £18,160. Yes the agreement would be effective from 1 April 2018 and increases would be backdated to this date. In any negotiation a pay claim is what the unions bring to the table as the starting point for discussion. Staff at the top of their pay bands are already benefiting from the full rate for the job they do. The second area is that for staff in bands 1-3, the current cash value of your unsocial hours payments would be held for the duration of the deal. NHS hospital chiefs have received £35million worth of pay rises in the last year – with some bosses at the worst-performing hospitals raking in the equivalent of … NHS pay in Cymru/ Wales. In exceptional cases individuals will be able to choose to stay on band 1 if, for example due to certain benefit entitlements, they would be better off doing so. During the three-year proposed agreement the band 1 rate will increase to £17,652 in April 2019 and in April 2020 it will hit £18,005, which will also be the bottom rate of band 2. This would mean: • 3% in 2018/19 • 1.7% in 2019/20 plus a lump sum worth 1.1% paid in April 2019 • 1.7% in 2020/21 This would amount to a total increase on basic pay of 6.5% over three years plus the extra 1.1% lump sum in April 2019. Senior nurse said she hadnt received her pension lump sum almost six weeks after it was due . You may have a reserved right to one of the top two points when re-earnable pay was introduced for pay bands 8c, d and 9 in 2013. Annex 2 of the NHS terms and conditions handbook confirms the full-time equivalent value of the 1.1 per cent non-consolidated lump sum payments that a full-time staff member in bands 2-9 should receive. Should I commute and take maximum lump sum to keep my pension below the higher rate tax level? Increments would no longer be annual, they would be further apart. You will move to the next point up on 1 April 2021. For current ambulance staff there will be an individual choice as to whether to continue with the unsocial hours entitlements in annex 5 of the NHS terms and Conditions handbook or to switch to the system that applies to all other staff in section 2 of the handbook. This is because the Government insisted on limiting the award to staff on the highest points of the top two pay bands. Other measurements of inflation, such as RPI, are higher, which would mean the pay offer would be below inflation. Getting to this new system means variation in changes in earnings for staff, depending on which pay point they are on. For example, the Office of Budgetary Responsibility predicts total CPI inflation to be 6.9% over the course of the three years, compared to a 6.5% headline pay award plus a one-off 1.1% lump sum. The 2008 uses the best salary from the last 10 years, rather than your final salary. The 2008 NHS pension is very similar to the 1995 NHS pension in that it is also based on your salary. From 1 April 2020. All NHS staff have worked under extreme circumstances during the civic 19 pandemic and placed themselves in harm to protect our nation. Someone starting a role will normally begin on the lowest pay point in their job band, before rising by one pay point per year until the… Roughly 14 per cent of the staff currently employed in the NHS would not reach the top of their band by the end of the three-year deal. NHS staff have seen their real income fall by around 14 per cent as a result of a pay freeze, which capped salary rises at just 1 per cent for the last five years. There are three areas where adjustments would be made to ensure greater consistency and deal with the knock-on effects of major changes to the pay scales. Your pay will rise to £17,460 from 1 April 2018. Please Note - At the time of publication, the branch believe that the lump sum element to the 3 year deal will be non-consolidated. One of the things we got out of the settlement was agreement to hold talks about refreshing the pay structure to make it work better for the NHS and staff in the future. For staff below the top of the bands the increases proposed over the three years are between 9% and 29%. Re-earnable pay for pay bands 8c, d and 9: There will continue to be an element of re-earnable pay for staff in pay bands 8c, d and 9. Detailed guidance will be produced to help employers use annually earned pay effectively and consistently. Does anyone know when I "retire" (I intend carrying on working after 60 but not carry on paying in) what the time scale is to receive the lump sum and pension. If you are on the top of pay band 9 you will get 4.6% over three years (rather than 6.5%). A key aim of this proposed agreement is to make whole pay system fairer and better for current and future NHS staff. In the unlikely event that a combination of special circumstances would mean this was not the case, the trade unions secured a ‘no detriment’ clause which would protect any such individuals. These staff would also receive the lump sum worth nearly £800 in April 2019. effective from 1 April 2018 the minimum basic rate in the NHS in England would be £17,460 – equivalent to £8.92ph – which exceeds the living wage. Unions demand 3.9% pay rise for NHS plus £800 lump sum; He also said many nurses were angry about the “misrepresentation” of the deal now on offer. More than 900,000 public sector workers across seven different workforces will get a real-terms pay rise.. However, no-one can predict inflation for certain. Pension will be just under £50K per year and lump sum around £145K. This is a complex three year pay deal for NHS staff that combines a cost of living pay rise with major structural reform of the NHS pay system in England. We are also concerned that the overlaps between pay bands are both unfair, and risky from an equal pay point of view. At some point before April 2021 you should have completed your move into band 2 and after two years in that band you would be eligible – through the new pay progression system linked to appraisals – to progress to the top of band 2. The NHS Pay Review Body (NHSPRB) advises on the pay of NHS staff. Most others will have reached it by the end of the proposed three-year agreement through the effects of the pay increases outlined above. improving starting salaries in each pay band by removing overlaps between bands. This is includes police officers, soldiers, teachers and prison guards. Dr David Andrew Royle 23rd July 2020 at 1:55 pm. In which case, we would increase your annual pension. These pay points will be removed in April 2018, April 2019, and April 2020. For example, if you receive a lump sum of £30,000 during your final year before retirement but the payment relates to arrears of pay spread over the three years leading up to retirement, then £10,000 will be apportioned to each year of pensionable pay during the referencing period. Many of those demands were unacceptable and in the end were taken off the table. However, annually earned pay will only be used in the year after you have reached the top of the band. It includes a £187 lump sum … This would start in year one and be finished in year two.. deleting points in the mid-range of each band in years two and three of the deal. Difficult to work out what is the best. NHS staff got nothing for their sacrifice, not even a lump sum payment of £500 to £1,000, which care home workers in France got – it makes me so sad. Use the Pay Raise Calculator to determine your pay raise and see a comparison before and after the salary increase. The same will apply to an 1995 or 2008 member whose total pensionable pay or reckonable pay was in respect of an earlier year, not the final year. We'll pay this standard lump sum in the 2008 section, reducing your pension by £1 for every £12 of lump sum you take. I knew as a retired GP that NHS pensions had estimated my final two years of superannuable earnings and once I knew the correct figures I was told that PCSE need to complete and send AW171 forms. Once the changes to pay bands have been complete the system resets with the new adjusted percentages for the future. 1.7% in 2019/20 plus a lump sum worth 1.1% paid in April 2019. If the offer is accepted it is guaranteed that everyone will be better off compared to existing arrangements. Rarely has a pay rise been more deserved.” Jeremy Hunt, 21 March 2018. For staff on bands 8d and 9 the non-consolidated lump sum will be the same value as that given to band 8c. This same cash rate would be applied until 31 March 2021. We have won the argument that the top of each pay band is the proper rate for the job. Current progression arrangements would continue to apply, so annual incremental progression would continue as expected for staff during the transition. Length of stay unchanged: For new starters to pay bands 8 and 9 it will take five years to get from the bottom of the band to the top. “We got agreement there would be an end to the pay … If you did not move to this section as part of the NHS Pension Choice Exercise, there is no automatic lump sum. It is expected that during transition employees will progress to the next pay point, subject to any required standards that are in place within their employer. You would also receive a … We believe that the proposed agreement is the best that we could achieve through negotiations and comes close enough to our claim overall for us to recommend it. Provide a one-off lump sum payment to the NHS workers putting their lives on the line for all of us. A Scottish Government spokesperson said:“This year nurses received a 2.95% pay rise as part of our three-year NHS Agenda for Change pay deal, which has delivered a minimum 9% pay … This is the same as now. More details. If you are on the top of pay band 9 you will get 4.6% over three years (rather than 6.5%). The proposed agreement would fully deliver on the third element of the claim because there is new money committed to pay for the reforms that we wanted. However, if you have taken your benefits on or after your 75th birthday, it may not be possible to pay you a lump sum retiring allowance. Every union will be talking to their members about this offer to see what they think – find out more by speaking to your rep or visiting your union’s website. Staff would get training and support to take on any necessary changes. This would amount to a total increase on basic pay of 6.5% over three years plus the extra 1.1% lump sum in April 2019. Then from 1 April 2021 unsocial hours entitlement would revert back to being calculated as a percentage and this percentage would be time plus 41%. However the deal goes further so that by March 2021 all jobs in band 1 would be altered to become band 2 roles. But the proposed agreement would provide for local employers and trade unions to work together to introduce local ways of guaranteeing that staff can access the annual leave and TOIL entitlements they do have, as we know many staff struggle to take what they are owed. Pay progression is not automatic under existing Agenda for Change arrangements. full technical version of the proposed agreement, Meaningful increases for top-of-band staff who already benefit from the full rate for the job – for most this would be worth 6.5% over three years plus a 1.1% lump sum in year 2, Increases for staff below top of band through simplifying bands so most staff reach the full rate for the job quicker – with the combination of reform and incremental progression worth between 9% and 29% over three years, Removal of band overlaps to ensure promotion comes with a proper pay rise, and to lessen the risk of equal pay challenges, Ending poverty pay through an immediate move to a new above-living wage minimum rate, with further increases for the lowest paid staff by the end of the deal, Big improvements to starting salaries to help the NHS attract and retain new staff. The first is that staff in bands 1,2 and 3 who are on pay points 1-8 currently get paid unsocial hours payments if they are off sick. No other leave entitlements will change. From April 2020 this is £19,337 and will get uprated by any annual pay awards due from April 2021 onwards. If your salary is reduced, you will be able to restore it the following year by achieving agreed levels of performance. The autumn of 2014 saw the first industrial action in the NHS over pay for 30 years. All staff would get a meaningful pay rise – in every case more than they could expect under the current system of incremental progression and annual awards capped at 1%. Your lump sum retiring allowance is usually equal to three times your annual pension, which is payable on your retirement. If we reject the deal then there is no guarantee that any additional money will be forthcoming and the PRB would have to base any recommendation on what it deems to be affordable to the service. I have tried to do the sums and consider length of … 2 thoughts on “ Are you due a ‘second bite lump sum’ of your NHS pension? These movements happen as part of the pay restructuring process. This would amount to a total increase on basic pay of 6.5% over three years plus the extra 1.1% … The main difference is you will become subject to re-earnable pay after you have reached the top of the band and not before, as now. We base the minimum lump sum you must take on the amount of membership (up to 31 March 2008) that moved to the 2008 section. That means they will rise by 3% from 1 April 2018, 1.7% from 1 April 2019 and 1.7% from 1 April 2020. Jaison Mathew Address supplied Estimate the cost of increasing your 1995 Section lump sum. Please note - this document was updated on 24 April 2019 to amend one of the bulletpoints, which previously advised on which organisation should fund the payment of the one off non-consolidated lump sum payment in circumstances where employees become eligible but subsequently change employers before the payment has been made. AfC includes all NHS staff except for doctors and dentists, and places them on a graded pay scale made up of nine bands ranging from £15,000 to £100,000. All but the very highest paid staff would get 3% in April 2018, 1.7% and a 1.1% lump sum in April 2019, and 1.7% from April 2020. The changes within this proposed agreement can't be made in one hit, they need to be spread out over a full three year period. This proposed agreement gives us wins on every one of our aspirations. There are lots of different ways of measuring inflation. Home / Pay calculator / Overview of the deal / How the deal will be funded / Unsocial hour enhancement payments – Bands 1-3 / Bands 8c, 8d and 9 / After years of pay caps and freezes, campaigning by NHS trade unions finally paid off. What is the lifetime allowance? Please Note - At the time of publication, the branch believe that the lump sum element to the 3 year deal will be non-consolidated. In 2018 the NHS Staff Council agreed to reform the NHS pay structure over a three-year period covering April 2018 to March 2021. If you end the three-year deal on one of the following paypoints:£27,416 (Band 5)£33,779 (Band 6)£41,723 (Band 7). NHS pay: Wales HSC pay: Northern Ireland The Chartered Society of Physiotherapy (CSP) is the professional, educational and trade union body for the UK's 60,000 chartered physiotherapists, physiotherapy students and support workers. 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