Govt consults on NHS 2023-2024 member contribution threshold uplifts

The Department of Health and Social Care (DHSC) has launched a consultation on proposed changes to the NHS Pension Scheme Regulations 2015 relating to uplifts to member contributions in 2023 to 2024.

The proposals aim to ensure that members of the NHS Pension Scheme are less likely to pay higher contribution rates due to pay rises that are in line with the Agenda for Change (AfC) pay award in England.

These changes happen annually to make sure that the AfC pay award for England is reflected in the legislation for the NHS Pension Scheme.

The DHSC initially consulted on the proposed uplifts to member contribution tier thresholds in October 2021, suggesting that this would maintain the yield and reduce the possibility for a small number of members to have a take-home pay reduction as a result of crossing tiers due solely to an increase to the AfC pay bands.

The government confirmed plans to push ahead with the changes in 2022, after the proposals received support during the consultation process, with 67 per cent of respondents agreeing that the thresholds should be uplifted in accordance with the AfC pay award.

The latest consultation therefore contains the proposed uplifts to the thresholds and is accompanied by draft amending regulations to give effect to these threshold changes.

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