Seniority and Partnership Premium Scheme in Wales

The scheme sits alongside the continued Seniority Payment Scheme with the aim to incentivise GPs to become partners whilst at the same time ensuring the retention of senior GPs.

The Seniority Scheme was not phased out in Wales as it was in England. It remained as an option for those within the scheme on 30 September 2019.

The New to Partnership Scheme introduced by NHS England is not available to partners in Wales. Whereas the “golden hello” incentive is a one-off payment, subject to eligibility criteria, the Partnership Premium is a continuous payment paid quarterly.

Applications to join the Seniority Scheme closed on 30 September 2019. However, GPs already within the Seniority Scheme have had the choice to remain or join the Partnership Premium Scheme. Once a GP joins the Partnership Premium Scheme they are not able to migrate back to Seniority Scheme.

Whereas Seniority payments are based on the GPs length of service, the Partnership Premium is primarily linked to the GPs sessional commitment. There are also no earnings eligibility criteria which can result in a reduction in seniority. GPs with pensionable profits (excluding seniority) between one third and two thirds of the national average only receiving 60% of their seniority. Those with profits below one third receive no seniority.

Below are some of the main points:

• annual payment of £1,000 per clinical session (up to a maximum of eight sessions per week);
• GP partners with 16 years or more service will receive an additional £200 “senior premium” per session;
• a clinical session is defined as four hours and ten minutes;
• annual leave up to six weeks (excluding bank holiday) qualifies;
• sickness absence is included;
• maternity, paternity, adoption and shared parental leave are included;
• paid on a quarterly basis (June, September, December, March); and
• payments are pensionable.

Many GP clients decided to join the Partnership Premium scheme back in 2019 or have done so since. However, there are some who remain in the Seniority Scheme. Remaining may have been the correct financial choice for those individual GPs but to advise on their options now and in the future, an understanding of their plans and potential future profit is required.

It is likely that those remaining in the Seniority Scheme are more senior GPs and have done so as their current seniority received, or receivable in the near future, is more than that receivable through the Partnership Premium Scheme. Others that remained may have been part time with profits considerably above the national average.

The GPs circumstances may change. Below are some factors that should be considered and discussed with clients remaining in the Seniority Scheme.

• Their length of service approaching 16 years and therefore entitled to the additional £200 per session “senior premium” if they opt to join the Partnership Premium Scheme.

• The potential of their pensionable profit decreasing to less than two thirds or one third of the national average and subsequently reducing their seniority entitlement:
1. reduced sessions in the leadup to retirement;
2. disposal or part disposal of the surgery ownership resulting in less rental profit;
3. succession planning resulting in a dilution of partnership profits;
4. withdrawal of a profitable enhanced service; or
5. anticipated increased expenditure such as building repair work or employment costs.

• Minimising the possibility of potential future clawback of seniority. The national average is not calculated, and any subsequent clawback is not made, for several years after the year in question. The client may want the certainty that comes with the Partnership Premium especially in the run up to retirement.

Seniority is no longer applicable to the majority of GPs but continued discussions should be had with those GPs in Wales that remain in the scheme.

^{*The views expressed are the author’s and not ICAEW}