Proposed rules and consultation on price caps for agency staff

Group of hospital staff

15 / 10 / 2015 4.30pm

Monitor and the NHS Trust Development Authority (TDA) have published the proposed rules and a consultation on the introduction of caps on the total amount trusts can pay per hour for all types of agency staff.

The information published:

  • sets out in detail the proposed price cap rules 
  • launches a consultation on the principle and detail of the rules.

Under the proposed rules, from 1 April 2016, trusts would not be able to pay more than 55 per cent above the relevant national pay rates for an agency worker, employed either via an agency or direct engagement.  The 55 per cent uplift would account for:

  • employment on-costs including employer pension contribution
  • employer national insurance
  • holiday pay to the worker
  • a modest administration fee / agency charge.

The aim is to introduce the proposed price caps on the 23 November 2015 and then, subject to monitoring, reduce them in two further stages so that by 1 April 2016 capped agency rates would be equivalent to national NHS pay rates for substantive staff.

Full details, including tables setting out the maximum total rates for each staff group, can be accessed via the GOV.UK website.  The consultation runs until 5pm on 13 November 2015 and all interested parties and stakeholders are invited to respond to the consultation.

The rules have been developed with the support of clinical and financial leaders across Monitor, TDA, the Care Quality Commission, NHS England and the Department of Health. The objective is to bring agency workers' pay in line with substantive workers' pay by 1 April 2016.

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