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NHS Very Senior Managers Pay Framework

15 May 2025

Proposing MP
Karin Smyth Lab
Bristol South
Type
Written Ministerial Statement
Department
Department of Health and Social Care
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At a Glance

Issue Summary

The announcement concerns the publication of a new NHS Very Senior Managers (VSM) Pay Framework aimed at incentivising high performance while penalising poor performance.

Action Requested

This framework will support changes in the NHS through the government’s Plan for Change, enabling employers to reward exceptional performance with bonuses up to 10% and withhold pay for VSMs in poorly performing organisations. It introduces a new segmentation system based on organisational performance metrics to determine eligibility for pay uplifts.

Key Facts

  • The new pay framework removes differentiation between different types of trusts and introduces benchmarks accounting for organisational size and turnover.
  • Employers can apply temporary increases to attract top talent to poorly performing organisations.
  • VSMs in the lowest-performing segment (NPAF segment 5) will not be eligible for pay uplifts unless an exemption applies.
  • NHS organisations must explain their pay decisions in annual accounts and submit a yearly report to NHS England.
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