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Primary Care Trusts: Pay

Volume 471: debated on Wednesday 30 January 2008

To ask the Secretary of State for Health what the average annual salary is of a primary care trust (PCT) chief executive in England; what the average was in (a) 2001 and (b) 2005; how many PCT chief executives received bonuses in (i) 2001 and (ii) 2005; and what the total value of such bonuses in each year was. (178960)

The Department does not collect details on the pay of individuals in primary care trusts (PCTs), and we therefore cannot provide the average salary of their chief executives. National health service organisations are public bodies and as such, the pay of their senior executive teams is a matter of public record, published in their annual accounts.

Following the reconfigurations proposed by “Commissioning a patient-led NHS” in July 2006 the Department published a new “Pay Framework for very senior managers in strategic and special health authorities, primary care trusts and ambulance trusts”, a copy is available on the Department’s website at

www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_4137432

PCT chief executives are paid a spot rate salary which is determined (within a range) by the size of the population the PCT serves. The document was updated in July 2007 and is available in the Library and on the Department’s website at

www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_076986

The current spot rate salaries are shown in the following table. The framework also provides for the payment of recruitment and retention premiums (of up to 30 per cent. of the spot rate salary) and payments for additional duties (up to 10 per cent. of the spot rate salary) where appropriate.

Spot rates for PCT chief executives in 2007-08

Weighted population

Salary from 1 April 2007 (£)

Band one

Up to 150,000

101,504

Band two

150-300,000

112,211

Band three

300-500,000

122,897

Band four

500,000-1 million

133,584

Band five

Over 1 million

144,271

In 2001, PCTs were still being established and there were no nationally set rates for the pay of their chief executives.

For information, the arrangements for the pay of their chief executives were formalised from 2002 with the publication of “Shifting the balance of power: a framework for benchmarking PCT Chief Executive salaries”. A copy is available on the Department’s website at:

www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_4083023

Salary ranges for PCT chief executives in 2002-03

£

Population served

Minimum

Midpoint

Maximum

Up to 150,000

78,625

85,000

91,375

150-300,000

87,875

95,000

102,125

300-500,000

92,500

100,000

107,500

The Department issued guidance on pay ranges and each year notified the NHS of the maximum increase in the pay envelope for senior executive staff. Pay increases awarded to individuals may have varied as long as organisations limited the total pay envelope for this staff group to the maximum set by the Department. For the period 2002 to 2005, these were as follows:

Percentage

2003-04

3.225

2004-05

3.225

2005-06

3.225

By applying these annual uplift levels to the salary ranges published in 2002, an estimate of typical salary levels can be made:

Typical salary ranges for PCT chief executives in 2005-06—estimated

£

Population served

Minimum

Midpoint

Maximum

Up to 150,000

86,480

93,492

100,504

150-300,000

96,654

104,491

112,328

300-500,000

101,741

109,990

118,240

Prior to 2006, PCT chief executives were on local contracts. Although in some cases individuals may have been awarded performance-related awards, there were no national arrangements for the payment of bonuses to PCT chief executives.

Performance awards were introduced for all PCT chief executives as part of the “very senior managers’ pay framework” published in July 2006.