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13/10/2010
NHS 'Lifetime Bonuses' Under Review
In a recent report, the BBC has found that large bonuses paid out to doctors cannot be taken away, even if their performance deteriorates, due to a loophole in the system.
The loophole means that more than half of the 36,000 consultants in England receive a "lifetime" bonus on top of their usual £89,400 basic pay.
The bonus scheme, currently under review, is worth more than £75,000 per year to high-performing doctors.
However Consultants are defending the scheme, saying it ensured excellence was rewarded.
On a cost cutting mission, all four governments agreed to a review of the bonuses during the summer.
Last year, in England alone, the awards scheme peaked at £200m.
Around 19,892 consultants are paid bonuses.
But news of the pay protection clause has complicated calls for the scheme to be scrapped.
To be considered for an award, consultants are asked to provide details of excellent performance and innovation in terms of clinical care, research and training.
The awards are only reassessed every five years, therefore critics said the loophole has rendered the checking process obsolete.
Between 2006 to 2009, the Advisory Committee on Clinical Excellence Awards withdrew just seven of the top awards worth over £35,484.
In 2010, the committee contacted those doctors who had not been taking part in the reassessment process. However, due to pay protection clauses these doctors have continued to get pay-outs even though the 'bonuses' have been formally withdrawn.
Those who have withdrawn do not receive annual pay rises so the NHS can start to get back some of the money, but as pay is currently frozen, that is having little impact.
Although the number of local awards withdrawn is unknown, for those who have helped administer the scheme the bonuses come with a virtual "lifetime" guarantee.
A Department of Health spokeswoman said there were "anomalies" in the system and that was why it was being reviewed.
She added: "In future we want to see a much tougher approach, including withdrawing them from people who no longer display the quality of work that would merit an award now."
The review is due to report next summer.
(BMcN)
The loophole means that more than half of the 36,000 consultants in England receive a "lifetime" bonus on top of their usual £89,400 basic pay.
The bonus scheme, currently under review, is worth more than £75,000 per year to high-performing doctors.
However Consultants are defending the scheme, saying it ensured excellence was rewarded.
On a cost cutting mission, all four governments agreed to a review of the bonuses during the summer.
Last year, in England alone, the awards scheme peaked at £200m.
Around 19,892 consultants are paid bonuses.
But news of the pay protection clause has complicated calls for the scheme to be scrapped.
To be considered for an award, consultants are asked to provide details of excellent performance and innovation in terms of clinical care, research and training.
The awards are only reassessed every five years, therefore critics said the loophole has rendered the checking process obsolete.
Between 2006 to 2009, the Advisory Committee on Clinical Excellence Awards withdrew just seven of the top awards worth over £35,484.
In 2010, the committee contacted those doctors who had not been taking part in the reassessment process. However, due to pay protection clauses these doctors have continued to get pay-outs even though the 'bonuses' have been formally withdrawn.
Those who have withdrawn do not receive annual pay rises so the NHS can start to get back some of the money, but as pay is currently frozen, that is having little impact.
Although the number of local awards withdrawn is unknown, for those who have helped administer the scheme the bonuses come with a virtual "lifetime" guarantee.
A Department of Health spokeswoman said there were "anomalies" in the system and that was why it was being reviewed.
She added: "In future we want to see a much tougher approach, including withdrawing them from people who no longer display the quality of work that would merit an award now."
The review is due to report next summer.
(BMcN)
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