Higher GP pension tiers outstripped by cost of living

19th May 2023 by NASGP

Higher GP pension tiers outstripped by cost of living

GPs will pay more into the NHS Pension Scheme in 2023/24 according to NHS England’s Proposed increases to the member contribution structure thresholds.

Compared with 2022/23, tiers from Tier 2 onwards have been enlarged to reflect the ways in which salaries and rates may have increased under inflation. Only Tier 1 remains the same:

Tier Pensionable earnings (rounded down to the nearest pound) Contribution rate from 1 April 2023
1 £0 to £13,246 5.1%
2 £13,247 to £17,673 5.7%
3 £17,674 to £24,022 6.1%
4 £24,023 to £25,146 6.8%
5 £25,147 to £29,634 7.7%
6 £29,635 to £30,638 8.8%
7 £30,639 to £45,995 9.8%
8 £45,996 to £51,707 10%
9 £51,708 to £58,971 11.6%
10 £58,972 to £75,632 12.5%
11 £75,633 and above 13.5%

Dr Richard Fieldhouse, NASGP chair, said: “With UK inflation currently at a staggering 10% over the past 12 months, this proposed 5% increase in pension tiers is simply inadequate and comes too late.

“Of course, this affects all GPs, and GP practices are feeling the financial strain as much as anyone else, particularly with soaring energy costs. As a result, many GP locums may be apprehensive about raising their rates, and salaried GPs asking for an equivalent pay rise, just to keep up with inflation, but of course, we have our livelihoods to consider too.

“In light of these new pension tiers, it is important for salaried GPs and GP locums to reevaluate their pay and rates. To assist in making an informed decision about rates, we encourage GP locums to use NASGP’s user-friendly locum rate calculator to ensure they are charging appropriate rates that reflect their value and the current economic climate.”

See all NASGP’s Money and Pensions resources. 

"LocumDeck is easy to use for both clinicians and practice managers. It’s well-designed, well-implemented and well-supported. It’s our go-to product for managing GP locum requests, bookings and invoices."

Nick Regaard, Practice Manager, The Abingdon Surgery, Abingdon, Oxfordshire

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