From 1 June 2025, there will be changes to Agenda for Change (AfC) bank pay rates, following the outcome of a recent review.
Historically, LUHFT has implemented top-of-scale bank pay rates to address staffing shortages and reduce agency reliance. Following significant workforce improvements and the need to support our journey to financial sustainability, we needed to reassess this approach.
We value our bank workforce, and this wasn’t a decision that was made lightly, but has been driven by several key factors reflecting both our financial and operational priorities.
The organisation recognises that this will impact a significant proportion of our bank workforce and are committed to being open and honest about these changes, and hearing your feedback, concerns or questions.
This letter from David Melia, Group Chief Nursing Officer, and Heather Barnett, Group Chief People Officer, explains the recommended changes in full and next steps.
FAQs
The Agenda for Change bank pay structure has been revised to reduce existing rates for bands 5 and above. This means work undertaken on the bank will be paid at mid-point of the corresponding grade, rather than the existing top of band rate.
This comes into effect on 1 June 2025. This will impact bank rates of pay from working week commencing Monday 2 June 2025.
This will impact all colleagues at band 5 and above working via our bank in an Agenda for Change role. This includes:
- substantive and bank-only workers
- clinical and non-clinical roles.
No, your core substantive salaries remain unchanged. If you are a substantive colleague undertaking bank shifts - your bank work rates will be recalibrated to the mid-point level.
No, these changes will affect all staff who work on the bank, not just nurses.
We really value our bank workforce, and this wasn’t a decision that was made lightly, but has been driven by several key factors reflecting both our financial and operational priorities.
This includes improved workforce stability. Over recent years, we have improved recruitment and workforce planning which has led to a stronger staffing position across different roles and professions. With greater numbers of substantive colleagues available to fill shifts, the reliance on higher bank pay-rates to attract temporary workers is no longer as critical as it once was.
Not entirely. It is a combination of acknowledging we have improved our recruitment position, meaning fewer staffing shortages, but also our reduction in bank and agency reliance means there isn’t a critical need for higher rates to attract temporary workers.
As we have been sharing with colleagues over the last few months, as an organisation we are currently in a challenging position with huge scrutiny on us from NHS England - especially to improve our financial position - meaning we must make some really difficult decisions.
Reducing the AFC bank rates for bands 5 and above to the mid-point is expected to generate annual savings of up to £2.4m. These savings will contribute to a more sustainable financial model, enabling us to invest in long-term workforce planning, staff development and patient services.
There is an inconsistent approach for the level of payment for bank staff across Cheshire and Merseyside. This leads to competition for staff and a disparity on how public money is spent. All Trusts are working towards the same position, and their pay rates will equally change.
Yes - once implemented, there will be a structured monitoring and review process established to ensure continuity of approach and address any issues.
We are aware there are other various pay arrangements in place across different services and are in the process of reviewing all rates across the organisation, including additional or locum work. We will be speaking directly to those teams who may impacted or have a historical arrangement in place.
We are using less bank and agency now than we have in a long time, but we will be monitoring any unintended consequences of this decision.
All staff groups and grades are subject to workforce and vacancy controls that have been implemented since last year. These bank changes will also affect any role who undertake bank shifts at Band 5 and above, not just nurses. Managers and senior posts are being reviewed as well, and we will be transparent about this following review by the ICB turnaround director.
Q continued: Staff at the top of their band feel that it is unfair to pay staff at the bottom of the band an enhanced pay (midpoint) and that they will work for less than what they receive on a day-to-day shift.
We considered all approaches to reduce the spend on Bank staff. We wanted to be consistent with the rest of Cheshire and Merseyside, who are working towards the same position, and their pay rates will equally change. We do recognise this is a difficult decision to take and staff will feel that it is unfair.
We don't use 'off framework' agency staff in nursing and nor do we pay above 'cap' – both measures are in place to ensure that we keep agency fees manageable. We have reduced our nurse agency spend in the last year by nearly £6m and we will continue to review the situation.
We have made Trade Unions aware, and they have shared their position on behalf of their members. We will continue to work with TU partners during this challenging time.
