Our stance on locum pensions: advice to Practice Managers
We know there has been a lot of confusion around GP locum pensions come April 1st and we want to provide you with the facts.
From April 1st practices who employ some GPs locums direct will be obliged to pay NHS pension.
This does NOT apply to all GP Locums. If the locum is retired or set up as a limited company you will not be obliged to pay this pension. We will be making it clear on the website which of these locums it applies to.
You are in control of your locum spend
You have always been able to control your costs with Network Locum, we allow YOU to set the rate you wish to pay so that we are always cost competitive to all other options in the market. If you choose to offer a lower rate to GPs that is up to you.
Actual increase arising from pension changes
The increase in cost arising from pensions is NOT 14%, but 12.1% since only 90% of GP earnings are pensionable.
Using a Network Locum locum (who is part of the scheme) will cost an extra £9.45 per hour in pension (if you currently offer the GP £75 per hour)
Your fill rates through us will be higher
Not only are we cheaper, even with the pension contributions, but because we allow locums to contribute to their pensions we are much more popular than locum agencies. Many locums are shunning the traditional recruitment agency in favour of Network Locum who allow them to pension their earnings. So if you post a job with us, you are much more likely to get it filled.
We charge less VAT
You pay VAT (20%) on the full amount with many agencies. We operate in a particular way which means that you only pay VAT on our service fee (meaning you pay £2.25 VAT rather than £18). Any agency which does not pay the GP direct will be charging you £18 p.h. in VAT. If they do not you are running the risk of investigation by HMRC and possible liability of a very large VAT bill at any point in time.
Please see the chart below that we have prepared for clarity on all-in costs.
Any questions, please get in touch, we are always here
CEO Network Locum
0203 771 8411