Navigating the 24/25 GMS increase and staff pay rises

The healthcare sector is currently grappling with the intricacies of implementing pay rises for GP practice staff, following the recently confirmed 7.4% uplift on the global sum for the 2024/2025 period. While this increase might seem straightforward at first glance, practice partners face a nuanced challenge in translating this financial adjustment into meaningful compensation for their workforce.

Breaking down the financial uplift

The 24/25 global sum increase of 7.4% comes with some notable details. A 2.7% increase was already distributed to practices from April 2024, with an additional 4.7% backdated to the same period, which was typically paid out on the September 2024 statement. Simultaneously, the Quality and Outcomes Framework (QOF) has seen a 3.4% uplift per point.

Navigating staff compensation challenges

Critically, the uplift is not simply a directive to increase staff salaries. Instead, it provides practices with financial flexibility to:

• Fund pay rises for salaried GPs
• Support increased compensation for practice staff
• Potentially increase partner profits

However, many practices are discovering that the 7.4% increase may not fully cover the recommended pay rises from professional bodies.

Professional body recommendations

Different healthcare professional organisations have put forward varying pay rise recommendations:

• The British Medical Association (BMA) suggests a 6% backdated pay rise for salaried GPs
• The Royal College of Nursing (RCN) recommends a 5.5% increase

Importantly, these recommendations are advisory, not legally binding, leaving practice partners with significant decision-making responsibility.

Strategic considerations for pay rises

Practice partners must carefully consider multiple factors when determining staff compensation:

1. Existing Wage Adjustments: Be mindful of pay changes already implemented this tax year, particularly those mandated by minimum and national living wage increases.
2. Internal Pay Equity: Pay rises for junior staff may necessitate corresponding adjustments for other team members to maintain appropriate wage differentials.
3. Long-Term Financial Planning: Remember that pay rises compound annually, increasing future operational costs. Some practices might consider alternative compensation methods like one-time bonuses.
4. Total Compensation Calculation: Always factor in additional costs such as employer pension contributions and National Insurance.

The importance of transparent communication

Perhaps most crucially, practices should prioritise clear communication with their workforce. Simply presenting the headline 7.4% global sum increase can create unrealistic expectations. Instead, practices should:

• Explain the complex financial landscape
• Outline the reasoning behind compensation decisions
• Provide context about funding sources and constraints

The 2024/2025 pay rise process requires GP practices to balance financial realism with staff motivation and retention. By taking a strategic, transparent approach, practices can navigate these challenging waters while maintaining a supportive and engaged workforce.

Practices are encouraged to consult with their financial advisors and professional bodies to develop the most appropriate compensation strategy for their specific circumstances.

If you’d like to discuss how these changes might affect your practice and explore strategies for optimal implementation after reviewing the full insight, I encourage you to book an initial meeting with us: Book an Initial Meeting with Ballards.

Please note that this insight is intended for informational purposes only and does not constitute financial or legal advice. Every business has unique considerations, and we recommend consulting with professional advisors before implementing any strategies or technologies discussed in this insight.