12 November 2010
Sir David Nicholson, NHS Chief Executive, has issued a letter this
week to Chief Executives and Chairs in England setting out the
governance arrangements for the pay of senior staff in provider
organisations further to the Transforming Community Services
("TCS") process. There are various models for the future provision
of community services, but in each case, there must be strong
governance and appropriate levels of transparency in place.
- Where the provider function transfers to an existing NHS trust or foundation trust, the pay of senior staff is a matter for that trust to consider through the normal processes involving the remuneration committee.
- Where the function is to be performed by a community NHS trust (as a precursor to that organisation applying for foundation status), the remuneration committee of the trust will be responsible for considering senior pay levels. However, before foundation trust status is achieved, strategic health authorities ("SHAs") will have an oversight role. The SHA remuneration committee will be required to approve pay proposals for senior staff given that these new trusts are "fledgling" organisations.
- SHAs are responsible, under the "Pay Framework for Very Senior Managers" ("Framework"), for approving senior pay in primary care trusts, and should be guided by the levels of pay set out in that Framework when considering appropriate levels of pay for senior roles in community NHS trusts. On attaining foundation status, these organisations will assume the responsibility for determining the pay of their senior staff.
- As is the case for roles covered by the Pay Framework, any proposal for a salary higher than £142,500 in a community NHS trust will require the prior approval of the Chief Secretary to the Treasury.
Hill Dickinson has a wealth of experience in dealing with the full
range of employment and pensions issues. If you have any queries
relating to the above, or any other legal matter, please do not
hesitate to contact us
for advice.
