NHS pay deal in England - frequently asked questions

As part of the deal, staff will receive two one-off non-consolidated payments on top of their 2022/23 salary. This will be in addition to the £1400 uplift to pay points implemented earlier in the year (topped up to 4 per cent for the top of band 6 and all pay points in band 7). The two payments consist of a 2 per cent non-consolidated award, and a one-off ‘NHS backlog bonus’ to recognise the sustained pressure facing the NHS following the COVID-19 pandemic. The NHS backlog bonus is worth an additional 4 per cent of the Agenda for Change pay bill – with additional payments ranging between £1,250 and £1,600 for each of the pay bands.

Find FAQs on payment information, eligibility and implementation.

Payment questions:

1. How will this be pro-rated for part time staff?
The same eligibility criteria will apply to part-time staff as full-time staff in their pay band (see other FAQs) however, these non-consolidated payments will be pro-rated in accordance with their contracted hours as of 31 March 2023.

2. Will these payments be taxed?
Yes. These payments will be subject to tax deductions and national insurance deductions at source.

3. Will these payments affect benefits received by staff?
Benefits requirements will vary by individual and by household, and may be affected by a non-consolidated payment. Members of staff in receipt of benefits should contact their benefit provider. More information on state benefits can be found on the GOV.UK website.

4. Will these payments be pensionable?
No, these payments are not pensionable and staff will not pay pension contributions on them. As these payments are not pensionable, they have no impact on any aspect of pension contributions.  

5. Will these non-consolidated payments impact on any enhancements? NEW Added 6 April 2023
These non-consolidated payments will be based on basic pay by pay point, as opposed to individual salaries. Therefore, there will be no adjustment to these payments in respect of any enhancements, for example unsocial hours payments.

6. How will the non-consolidated payments interact with pay arrangements for apprentices? NEW Added 11 May 2023
For those apprentices who receive a proportion of an Agenda for Change pay band, the appropriate uplift will be applied to the pay band. For example, trainees earning 75 per cent of Band 8a will receive 75 per cent of the Band 8a NHS Backlog Bonus as well as the additional non-consolidated award worth 2 per cent of their individual basic salary.

For those who receive salaries not aligned to Agenda for Change pay bands, local employers should determine the appropriate uplift in partnership with local trade unions using the principles of the offer i.e. a 2 per cent lump sum and the most appropriate level of backlog bonus.

Eligibility:

7. Who is eligible for the non-consolidated payments?
These non-consolidated payments will cover 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 as of 31 March 2023

8. Will bank staff and those outside direct employment receive the non-consolidated payments?
These non-consolidated payments cover staff directly employed by NHS organisations (e.g. staff on permanent and fixed term contracts) as set out in Annex 1 of the handbook on Agenda for Change terms as of 31 March 2023. However, there may be local contractual arrangements that need to be considered.

9. What happens if a member of staff has moved employers in the 2022/23 year?
Where staff are directly employed by an NHS organisation (for example permanent and fixed term contracts) as set out in Annex 1 of the handbook on Agenda for Change terms as of 31 March 2023, they will be eligible for both the non-consolidated payments. The new/current Annex 1 employer (as at 31 March 2023) will be responsible for making the payments.

10. What happens if a member of staff changes employer after 31 March 2023 – who is responsible for the non-consolidated payments?
Where staff are directly employed by an NHS organisation (e.g., permanent and fixed term contracts) as set out in Annex 1 of the handbook on Agenda for Change terms as of 31 March 2023, they will be eligible for both the non-consolidated payments. The NHS organisation who employed the member of staff as of 31 March 2023 will be responsible for making the payment.

11. What if a member of staff has changed their pay banding in the 2022/23 year?
These non-consolidated payments will be based on the pay point as of 31 March 2023. This applies to staff directly employed by NHS organisations (e.g., permanent and fixed term contracts) as set out in Annex 1 of the handbook on Agenda for Change terms, including those who are temporarily promoted and on secondment to an NHS organisation as set out in Annex 1 of the handbook.

12. What if a member of staff leaves the NHS after 31 March, do they have to repay the non-consolidated payments?
No. Where staff are directly employed by an NHS organisation (e.g., permanent and fixed term contracts) as set out in Annex 1 of the handbook on Agenda for Change terms as of 31 March 2023, they will be eligible for both the non-consolidated payments. Where staff subsequently leave NHS employment, they will not be required to pay this back (either in full or as a proportion).

13. What payments will staff who have been on parental/maternal/adoption leave receive?
Staff on maternity/parental/adoption leave remain employed and are therefore eligible to receive the non-consolidated payments. This will be based on their pay point on the 31 March 2023.

14. Will staff who have been on sick leave receive the non-consolidated payments?
Employers are urged to ensure that staff on long-term sick leave, where appropriate, receive the non-consolidated payments.  This will be based on their pay point on the 31 March 2023.

15. Will recently retired staff receive the non-consolidated payments for their work in the 2022/23 year?
These non-consolidated payments apply to staff directly employed by an NHS organisation (e.g., permanent and fixed term contracts) as set out in Annex 1 of the handbook on Agenda for Change terms as of 31 March 2023. Any individual who has left NHS employment before that date is not eligible for these non-consolidated payments.

16. Will staff on a career break receive the non-consolidated payments?
This will be for local employers to determine on a case-by-case basis.

17. Will the non-consolidated payments include high cost area supplements (HCAS) payments?
These non-consolidated payments will be based on basic pay by pay point, as opposed to individual salaries. Therefore, there will be no adjustment to these payments in respect of HCAS.

18. Will the non-consolidated payments affect recruitment and retention payments (RRPs)?
These non-consolidated payments will be based on basic pay by pay point, as opposed to individual salaries. Therefore, there will be no adjustment to these payments in respect of RRPs.

19. What happens if a member of staff has been TUPE transferred to a private company providing NHS services? NEW Added 13 April 2023
These non-consolidated payments will only apply to staff directly employed by NHS organisations (e.g. staff on permanent and fixed term contracts) as set out in Annex 1 of the handbook on Agenda for Change terms as of 31 March 2023.

Where staff are TUPE transferred after 31 March 2023, they will be eligible to receive the payment. 

Where staff are TUPE transferred before 31 March 2023, their eligibility will depend on individual contractual arrangements.

Implementation:

20. When will staff receive these payments?
If the offer is agreed through the NHS Staff Council, we will start to work with the electronic staff record (ESR) to prepare for the awards immediately. As with the implementation of all awards, this process takes time, but staff can expect to receive both of the 2022/23 non-consolidated payments by the summer. Should the offer be agreed, further details on timelines for payment will be provided. 

21. Will both non-consolidated payments be implemented together?
The implementation of both will happen together.

22. Can staff ask for their lump sum payment to be made in multiple instalments? NEW Added 5 May 2022
Yes, please follow this guidance. 

Staff will also receive a consolidated uplift for 2023/24 worth 5 per cent. In addition, the lowest paid staff will see their pay brought up to the top of band 2, resulting in a pay increase of 10.4 per cent.

1. When will staff receive this payment?
If the offer is agreed through the NHS Staff Council, we will start to work with the electronic staff record (ESR) to prepare for the awards immediately. As with the implementation of all awards, this process takes time, but staff can expect to receive the 2023/24 consolidated award by the summer, backdated to 1 April 2023. Should the offer be agreed, further details on timelines for payment will be provided. 

2. What will different bands receive?
The award is worth a 5 per cent increase in basic pay for all pay points. The lowest paid staff (band 1 and entry point of band 2) will also see their pay brought up to the top of band 2 (a total of a 10.4 per cent pay increase)

3. How does this payment interact with enhancements?
The consolidated increase from 1 April 2023 will be reckonable against all enhancements provided for within the AfC terms and conditions, such as unsocial hours premia.

4. Is this uplift pensionable?
Yes. The consolidated uplift is pensionable and will form part of an individual’s pensionable earning.

5. What is being done to address the increased National Living Wage (NLW) set to be applied from 1 April 2023?
The government has announced an interim uplift to address the NLW increase as of 1 April 2023. This will affect staff in Band 1 and the entry point of band 2 and should be seen as an advance on the full 2023/24 AfC pay award. If agreement on the offer is reached, these pay points will be increased by any amount not already received through the early uplift, and this outstanding amount will be backdated to 1 April 2023.

Information on the interim uplifts can be found on this web page. 

6. Are high cost areas supplements (HCAS) being updated?
All HCAS rates will be uplifted by 5 per cent effective from 1 April 2023.

7. How will the consolidated payment affect pension contributions? NEW Added 6 April 2023
The amount of pension contributions that members pay has been recently reformed and the proposals were put out to public consultation. As a consequence of these reforms, it was decided that the tier boundaries in the member contribution structure would be increased in line with annual AfC pay awards. This annual uplift reduces the possibility for a small number of members to see their take-home pay reduce as a result of crossing into a higher contribution tier solely because of the AfC pay award.

It is DHSC’s policy to set out the thresholds in regulations and therefore they must be updated year on year. Draft amending regulations will be put out to a short consultation as swiftly as possible after the AfC pay award has been announced and any amendments will be backdated to 1 April 2023, in line with the AfC pay award in England.

This reduces the chance that members will pay a higher contribution rate solely due to seeing their pay increase as a result of the AfC pay award for England alone.

8. How will the consolidated payment for 2023/24 interact with pay arrangements for apprentices? NEW Added 11 May 2023
For those apprentices who receive a proportion of an Agenda for Change (AfC) pay band, the appropriate uplift will be applied to the pay point their salary is based on. For example, trainees earning 75 per cent of the top of Band 5 will receive 75 per cent of the 2023/24 rate for that pay point - so their individual salary will increase by 5 per cent.

For those who receive salaries not aligned to AfC pay bands, local employers should determine the appropriate uplift in partnership with local trade unions using the principles of the offer i.e. a minimum 5 per cent uplift.