Government plans for 2.8% GP pay rise next year

The Government has set aside funding to offer GPs a maximum 2.8% pay rise for 2025/26, its submission to the independent pay review body has revealed.

In submitted evidence published today, the Department of Health and Social Care (DHSC) said it believed this was a ‘reasonable amount to have set aside’ for the next financial year, based on economic forecasts and ‘taking into account’ the fiscal context.

The Review Body on Doctors’ and Dentists’ Remuneration (DDRB) is currently taking evidence ahead of its recommendation, but the timing of DHSC’s report suggests it will come earlier than in recent years, as health secretary Wes Streeting has instructed.

According to the DHSC’s submission document, arrangements for the 2025/26 GP contract are currently ‘subject to consultation’ with the BMA’s GP Committee, with final details to be published in spring 2025.

In July this year, the DDRB recommended a 6% pay rise for all UK GPs, which included partners for the first time in five years, and the Government accepted this recommendation in full.

However, the DDRB only advises on pay increases and not the total funding uplift received by practices, which was later set by the Government at a 7.4% uplift to the global sum for 2024/25.

In a section on ‘affordability’ for 2025/26, the Government’s evidence to the DDRB said: ‘The Department of Health and Social Care (DHSC) has set aside 2.8% for pay for both [NHS Pay Review Body] and DDRB remit groups.

‘DHSC view this as a reasonable amount to have set aside based on the macroeconomic data and forecasts and taking into account the fiscal and labour market context.’

It also suggested that if the DDRB recommendation is above 2.8%, the Government is unlikely to accept it.

‘Accepting recommendations above what is budgeted for would mean stark trade-offs against activity and wider budgets or consideration to whether productivity improvements can unlock further funding,’ DHSC said.

The report recognised that the Government had taken ‘difficult decisions’ in the recent Autumn Budget, including by ‘increasing the rate of employer NICs to fund public services’.

However, it did not mention the impact of the NICs hike on GP practices, which Mr Streeting has said he will address, telling the GPCE that he is ‘working rapidly to finalise the funding envelope for general practice for 25-26’.

The report said: ‘Detail on how the Autumn Budget 2024 will impact on general practice finances was yet to be fully established at the time of writing our evidence.’