NHS Employers and the British Medical Association (BMA) have agreed an amendment to the Terms and Conditions – Consultants (England) 2003. From 1 April 2018, trusts must run annual local clinical excellence award (LCEA) rounds.
The detail is set out in the new schedule, and is applicable to consultants directly employed on the Terms and Conditions – Consultants (England) 2003. The new version of the terms and conditions is on the Terms and Conditions of Service - consultants web page.
The agreement details how existing LCEAs will be maintained, the provisions that will apply to new LCEAs awarded from 1 April 2018 and future awards from 1 April 2021, and interactions with the national clinical excellence awards scheme.
Both parties believe that this agreement provides stability and clarity for consultants and employers on the availability of awards for quality and excellence, acknowledging exceptional personal contributions. It also sets a positive context for further negotiations around a new consultant contract, which will be resumed in due course.
NHS Employers and the BMA issued a joint statement and joint frequently asked questions. The parties have also published Local clinical excellence awards guidance 2018-21 (England).
NHS Employers has published a list of employer frequently asked questions (updated August 2018) and a summary of the arrangements.
We have also published a slide pack for employers around the changes to LCEAs and wider consultant contract reform and a slide pack around eligibility and the minimum investment ratio (both updated November 2018).
We have produced some reporting templates to assist employers in developing the financial element of their LCEA end-of-year reports. Employers have the option to allocate awards using a points-based approach or by determining the value of the awards locally (allowing for the allocation of awards of different values). We have developed a template for a points-based approach and a template for a locally-determined approach.
We have also published a new guide to help employers develop their LCEA process. View Developing your local clinical excellence awards process.
On 3 and 6 December 2018 we held two webinars to walk employers through new and updated LCEA resources. Listen to the webinar recording and view the slides.
Department of Health and Social Care documents
The Department of Health and Social Care (DHSC) has published an Equality Analysis of the CEA scheme, which considers the effect of the collective agreement on different groups protected from discrimination by the Equality Act.
Implications of the government's response to the DDRB report on LCEAs
The government published its response to the 46th Doctors’ and Dentists’ Review Body (DDRB) report. For consultants, the government has committed to a 1.5 per cent increase to basic pay from 1 October 2018, with 0.5 per cent of pay bill to be targeted on the new system of performance pay to increase the amount available for performance pay awards from 2019/20. The government also confirmed that there would be no increases applied to the value of either national or local clinical excellence awards.
The 1.5 per cent increase to basic pay from October equates to 0.75 per cent of the annual consultant pay bill. This leaves 0.25 per cent of the 1 per cent consultant pay bill uplift already included in the 2018/19 tariff (the tariff assumed a pay award in line with public sector pay policy of 1 per cent in 2018/19; see para 235 of 2017/18 2018/19 National Tariff Payment System) and the government has stated that employers will be able to choose to use this:
- as transitional funding to manage the costs of running the required 2018 CEA award round
- to increase the value of the investment pot for the 2018 CEA award round.
Employers are advised that they should review their plans for running 2018 award rounds and make a decision on how to best use this discretion.
The 0.5 per cent of pay bill to be targeted on the new system of performance pay to increase the amount available for performance pay awards from 2019/20 means that the investment in new CEA awards (as per the calculation set out in Schedule 30 of the terms and conditions of service) will be almost doubled.
Until the end of March 2019, the minimum investment ratio for new LCEAs awarded from April 2018 will be set at 0.3 points per eligible consultant annually. In 2019/20 (the “2019 award round”) the minimum investment will be 0.5 points per eligible consultant and in 2020/21 (the “2020 award round”) the minimum investment will be 0.25 points per eligible consultant. The minimum investment is cumulative over the three-year period resulting in a minimum investment ratio of 1.05 in 2020/21. Any time limited awards remaining in payment from previous award rounds during this period will be deducted to determine the amount available for investment each year in new awards. For these purposes, ‘eligible consultants’ are those with at least one year’s service at consultant level and do not hold an employer-based level 9, a national clinical excellence award or a distinction award as outlined in part 2 of this guidance.
We will update the relevant documents on this page to reflect the increased investment ratio.