12 September 2022

Following the earlier communication about changes to the NHS Pension Scheme tiers and contributions, we’d like to share additional information relating to the pay award 2022/2023, due to be paid in September salaries, and the impact this will have on some colleagues.

Changes to pension contributions nationally from 1 October 2022 mean that some colleagues may have a change in their employee NHS Pension contribution rate in their September salary due to the pay award. This will have a noticeable impact on colleagues at the bottom of pay bands 3, 5 and 8a, particularly those receiving basic pay only.

For colleagues in band 8a (entry point), the pay arrears will not fully cover the pension contribution arrears, as the uplift to basic pay will move them into a higher pension tier contribution rate which came into effect on 1 April 2022.

This means, back dated pay award arrears from April 2022 being paid in September salaries, will be less than the arrears to be paid in pension contributions. It will result in take home pay being less, despite the back pay. 

However, there are some exceptions to this as listed below:

  • Colleagues may already be on the higher pension contribution rate as they receive regular pensionable allowances (enhancements, lead payments, on call) and means overall pensionable pay previously exceeded tiered thresholds and there will be no change to their pension contributions
  • Colleagues with active salary sacrifice benefits so overall pensionable pay may still be below the threshold even when the pay award is accounted for
  • Some band 8a colleagues may not have been in post for the full five months and therefore the net pay impact could be less
  • There could be colleagues outside of band 8a entry point who receive regular pensionable allowances (for example, enhancements, lead payments, on call) which result in them being in the pension tier which has increased from 9.3% to 12.5%. This could result in pension contribution arrears exceeding back dated pay award arrears.

These are nationally approved changes and not within our control, however we want to support our colleagues impacted by the changes.

Mersey Care recognises the need to support colleagues, and not only strives to support the mental and physical health but also the wider, social aspects of health and wellbeing. Our Staff Hub, Financial Wellbeing section has a range of intervention resources and services which can be accessed on YourSpace.

We recognise that changes to your financial situation may have a negative impact on your mental health and that you may require support. If you need to talk, please contact our staff counsellors or therapists in confidence via Staff Support Service or visit our Mental Wellbeing section for additional information.

We understand this is unwelcome news, but we feel it right to make you aware of the changes to help you to prepare for any shortfall at the end of the month.

If you need any further support, please liaise with your manager or HR in the first instance. 

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