2024/25 lump sum payments in instalments guidance
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This guidance has been developed by NHS Employers and trade union representatives and is intended to be used by local partnerships to support the implementation of the government's 2024/25 pay award announcement.
The government has accepted the 2024/25 recommendations of the NHS Pay Review Body (NHS PRB) and agreed a 5.5 per cent consolidated uplift, backdated to 1 April 2024. NHS staff can expect to receive their pay in October 2024, this will also include a backdated payment to 1 April 2024.
It is recognised that it may be preferable for some individuals to receive the totality of these payments in multiple instalments (for instance, paid across several months), rather than together in a single months pay. An example of this might be where individuals receive Universal Credit payments, where any changes to monthly income will directly impact the value of these payments.
Employing organisations have the flexibility to pay these payments in multiple instalments. As part of the discussions, local employer and staff-side partnerships should work together to ensure that staff are aware that this option exists for this year’s pay uplift, and that the process to follow is clearly communicated, including:
- the cut-off date for making a request, and
- who a request should be made to.
The following process should be followed:
Step 1: Any member of staff considering making this request should access appropriate advice (for example through the Universal Credit helpline or Citizens Advice) to understand how receiving these payments in multiple instalments may impact their personal situation.
Step 2: Any requests should be made as soon as possible, and before the cut-off date communicated by the employer.
Step 3: The timeframe over which payments should be spread should be agreed between the employer and the member of staff. Staff should make sure they understand how much their monthly payment would be, and how it would appear on their payslip.
Step 4: Employers should process the request as soon as possible, and work with local payroll teams to ensure payroll deadlines are met.
Further points to consider:
- Staff would need to consider the potential impacts of spreading the payments out across multiple months. For example, if an individual is claiming Universal Credit, any lump sum or backdated earnings may affect how much Universal Credit received in the month they are paid. Please see the this Universal Credit guidance for further information.
- Employers would not be expected to agree to requests from staff to change the nature of the payment once it has already been paid as a single amount.
- Any plans for paying multiple instalments may need to be revisited in the eventuality of a member of staff leaving the organisation or changing employer part way through receiving the payments. The logistics of this would need to be decided locally, however staff in this position would still be entitled to receive the full value of the payments.
Where a member of staff has agreed with their employer that the 2024/25 payments should be paid in multiple instalments, the employer will need to set this up on the Electronic Staff Record (ESR) system.
It's important to note that where a request has been made to split out the payment of arrears over two or more months, the retrospective payment generated by the system will need to be removed. A local payment element will need to be used to make the payments over the number of periods agreed between the employee and the employing organisation.