The recent Department of Health and Social Care (DHSC) consultation on the NHS Pension Scheme confirmed that the transitional approach that has operated since 2019/20 for employer contributions will continue in 2024/25. This means that from 1 April 2024 an employer rate of 23.7% (23.78% inclusive of the administration charge) will apply. However, the NHS Business Services Authority will continue to only collect 14.38% from employers under their normal monthly payment process to the NHS Pension Scheme.
Employers should ensure that their payroll provider continues to apply an employer contribution rate of 14.38% for 2024/25.
For NHS organisations, employers should carry on paying pension payments as normal:
- the NHS Business Services Authority will continue to only collect 14.38% from employers and organisations should plan on this basis.
- central payments will be made by NHS England for the remaining 9.4%.
For organisations currently invoiced separately, you will continue to receive invoices:
- DHSC invoices will increase to account for the additional 3.1% contribution rate for Local Authorities (including County Councils), Ministry of Defence – People, Pay & Pensions Agency and for 2.64% of the 3.1% rate for University Medical Schools costs.
- Local Authorities (including County Councils) and Ministry of Defence – People, Pay & Pensions Agency invoices will remain the same.
- University Medical School invoices will increase to take into account the remaining 0.46% of the 3.1% rate. This split has been determined to account for the fact that University Medical Schools are commissioned both centrally (through Government and the NHS) and externally.
- DHSC Arms-length bodies invoices will increase to account for the additional 3.1% rate, and funding will be provided accordingly.