Changes to the PCN additional roles reimbursement scheme and what this means for pay increases

This short blog focuses on providing an update to our blog titled Navigating the Additional Roles Reimbursement Scheme Uplift Uncertainty—Advice for Primary Care Network Leaders, now, the updated Network Contract DES: Contract specification 2024/25 – PCN requirements and entitlements was released on September 26, 2024.

24/25 PCN DES UPDATE

Navigating ARRS Uncertainty

The latest PCN Guidance

Let's Jump In!

The updated specification introduced the following changes:

1️⃣ The addition (from 1 October 2024) of general medical practitioners (GMPs) as reimbursable roles within a new, ring-fenced section of the Additional Roles Reimbursement Scheme (ARRS) in 2024/25 specifically for newly qualified

GMPs.

2️⃣ . The maximum reimbursement amounts per role for existing ARRS roles will be raised (from 1 October 2024).

3️⃣ The uplifting of other financial entitlements under the Network Contract DES, backdated to 1 April 2024:

🎯 Core PCN funding

🎯 Payments for the enhanced access service

🎯 The care home premium

Purely focussed on the ARRS uplift, while the maximum reimbursement for individual ARRS roles has increased, meaning that higher salaries can be awarded, the total budget for the scheme has not grown.

A snapshot of the increase in reimbursable rates can be found below.

PCN Additional Roles Reimbursement from 1st Oct 2024

Whilst this is somewhat good news, the lack of an overall increase in the funding pot creates a potential challenge in some networks because:

1️⃣ Pay Rises Could Limit Hiring: When the funding per role increases without additional overall funding, PCNs may face a trade-off between offering pay rises to current staff and hiring new team members.

2️⃣ Strain on Resources: PCNs will need to carefully allocate their funding to avoid overspending,  even if they choose to top up salaries from other funding streams. If salaries are increased, they might need to adjust staffing levels or the number of roles they can support.

While staff may understandably feel they are entitled to the 5% - 5.7% salary increase, it is not guaranteed because of the overall funding limitations.

The impact on recruitment and retention

Recruitment

If your network is well under budget, higher maximum reimbursement rates might make it easier to recruit. But staff hopping from one network to another should think carefully because there will always likely be some sort of funding discrepancy to navigate. Networks and employees should look at their overall recruitment package.

Retention

The costs of losing a staff member, hiring, and retraining their replacement will likely be significantly more expensive in the long run than awarding a pay increase.

This challenge is not unique to primary care networks; all businesses face it, and networks will need to think strategically about their approach not just for this year but for 25/26 too.

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About the Author

I'm Tara; I am the founder of THC Primary Care, an award-winning healthcare consultancy specialising in Primary Care Network Management and the host of the Business of Healthcare Podcast.

I have over 20 years of project management and business development experience across the private and public sectors, and I have supported over 120 PCNs by providing interim management, training and consultancy.

I have managed teams across multiple sites and countries; I have an MBA in Leadership and Management in Healthcare, I'm published in the London Journal of Primary Care, and I am the author of over 250 blogs.  

I have 3 children. My eldest has Asthma, my middle child has a kidney condition called Nephrotic Syndrome, and my youngest daughter has Type 1 Diabetes, so outside of work, healthcare plays a huge role in my life.