Very Senior Managers (VSM) pay

This page includes information on the government's response to the Senior Salaries Review Body (SSRB) recommendations for the pay of NHS Very Senior Managers (VSMs), the evidence submitted by NHS Employers and the review body process.

2008-09 Pay award for Very Senior Managers in the NHS

For executive staff covered by the Very Senior Managers' Pay Framework, the Senior Salaries Review Body has recommended, and the Government has accepted:

• an increase to basic pay of 2.2 per cent with effect from 1 April 2008
• that the bonus pot remain at 5 per cent of the VSM pay bill.

Remuneration for Chairs and other non-executive members of Strategic Health Authorities (SHAs), Primary Care Trusts (PCTs), NHS Trusts, Special Health Authorities, Executive agencies and Executive and Advisory Non-Departmental Public Bodies will also rise by 2.2 per cent with effect from 1st April 2008.

The Department of Health has written to employers saying that executive staff not covered by the Very Senior Managers' pay framework increases to basic pay should be no more than 2.2 per cent, with effect from 1 April 2008.

NHS Employers evidence and the review process

NHS Employers submitted evidence on very senior managers' pay to the senior salaries review body (SSRB) for the first time this year.

This review body previously made recommendations on pay for three groups - the judiciary, senior civil servants and the armed forces. It now covers for the first time this year very senior managers in the NHS.

The process works in the same way as with the other NHS pay review bodies, in that evidence is submitted by various organisations including DH and trade unions, it is considered by the review body and they in turn make recommendations to government on what the award should be. Final decisions are made by government.

Our evidence is based primarily on comments sought from NHS organisations specifically on the pay arrangements for very senior managers last published by DH in July 2007. Views have also been received through our networks, reference groups, and responses to the questionnaire circulated to NHS organisations when gathering evidence to be submitted to the other pay review bodies (DDRB and NHSPRB).

The evidence says that the uplift should be affordable and recognise the need for employers to achieve financial balance and be consistent with resources available.

NHS Employers would strongly support the suggestion that there should be an early review to ensure that the VSM arrangements are working effectively in delivering, rewarding and retaining talent in these key managerial posts in NHS organisations.

• The full report of our evidence can be downloaded here.
• The full report of the senior salaries review body can be downloaded from the Office of Manpower Economics' website.