Response to 2023 Autumn Satement

Andrew Pow, board member of the Association of Independent Specialist Medical Accountants, said:

“Today’s confirmation that the minimum wage is to increase by 9.8% will be setting the alarm bells ringing in general practice, where funding is not keeping pace with wage growth, led by minimum wage increases.

“Since March 2019 the minimum wage has seen cumulative growth of around 46%, including this latest increase, compared with an increase of around 19% in global sum funding from 2019/20 through to 2023/24.”

“Many practice staff are paid the minimum wage or slightly higher and all will expect their pay to increase proportionate to the 9.8% increase. If global sum funding from April 2024 isn’t increased to take this into account, practices will be left short.”

Mr Pow added that GP partners and locum doctors would save £192 a year from the abolition of Class 2 National Insurance contributions (NICs), and also benefit from a 1% cut in Class 4 NICs on profits between £12,570 and £50,270 from 6 April 2024. For a self-employed GP on £50,000 this will mean a saving of around £375 a year in Class 4 NICs.

 “The 2% cut in the main employee NIC rate from 6 January, coming 3 months earlier than the self employed reduction, will benefit salaried employees and other staff members,” he said. “For a salaried GP on £50,000, this will mean a saving of around £700 a year.”

“The bigger picture, however, is that because income tax thresholds remain frozen until 5 April 2028, more people are paying more tax at higher levels.”