Annex 11: Additional freedoms for NHS foundation trusts in England

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1. Where NHS organisations acquire earned autonomy or foundation trust status in England, they will have greater autonomy in relation to the use of specified local freedoms under this agreement. In these areas:

(i) NHS foundation trusts will be able to act independently, consistent with their licence;

(ii) three-star NHS organisations will be able to act independently, but will be required to consult with local or neighbouring employers before final decisions are taken on the use of these freedoms;

(iii) all other NHS organisations will be able to act only as permitted by guidelines agreed through the NHS Staff Council.

2. The specified local freedoms which can be exercised with greater autonomy are as follows:

Freedoms which require good management

(i) the ability to offer alternative packages of benefits of equivalent value to the standard benefits set out in this agreement, among which the employee can make a personal choice (e.g. greater leave entitlements but longer hours);

(ii) the ability to negotiate local arrangements for compensatory benefits such as expenses and subsistence, which differ from those set out in this handbook;

(iii) the ability to award recruitment and retention premia above 30 per cent of basic pay where that is justified, without prior clearance by the NHS Staff Council.

Freedoms which must be part of a properly constituted reward scheme for individual, team or organisational performance related to genuinely measurable targets, offering equal opportunities for all staff in the relevant organisation, unit or work area to participate

(i) the establishment of new team bonus schemes and other incentive schemes;

(ii) the establishment of schemes offering additional non-pay benefits above the minimum specified elsewhere in this agreement;

(iii) accelerated development and progression schemes.

Pay circular (AforC) 2/2013: amendment number 28

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