NHS Pensions

Eligibility for redundancy

Revised redundancy conditions for employees

From 1 April 2015, new redundancy provisions were introduced as part of the 2015 pay settlement for staff. This is covered by Agenda for Change terms and conditions.

Salary limits for calculating redundancy payments

A lower limit of £23,000 and an upper limit of £80,000 has been set for the whole time equivalent salary used to calculate an employee’s redundancy payment that is payable by the employer.

This applies in both the 1995/2008 Scheme and the 2015 Scheme, where a formal redundancy consultation began on or after 1 April 2015. View Section 16 of the Agenda for Change handbook for more guidance about redundancy payments for members subject to Agenda for Change terms and conditions.

Get legal advice if you're unsure

If there is doubt about the level of redundancy payment a member is entitled to, you may decide to take your own legal advice as we are unable to assist in such matters.

Who the revised provisions apply to

The revised redundancy provisions apply to members who are employed in England and subject to Agenda for Change terms and conditions.

They do not apply to:

staff employed in NHS Wales
hospital doctors, dentists and very senior managers who are not subject to Agenda for Change or equivalent terms and conditions

Who can get a redundancy payment

Section 16.3 of the Agenda for Change handbook says that to qualify for a redundancy payment, the employee must be working under a contract of employment for an NHS employer. An NHS employer is any of the organisations listed in Annex A of the handbook, or any predecessor or successor body.

Different employers and redundancy

What we can advise on

Redundancy is mainly an employment matter so you must consider a few things before speaking with us. We cannot comment specifically on employment decisions. We can only confirm whether the member is eligible to access their pension under the redundancy provisions of the NHS Pension Scheme.

Who is not eligible for redundancy pension benefits

The following do not have access to redundancy pension benefits through the NHS Pension Scheme:

alternative provider medical services
personal medical services
general medical services
Out of Hours employees

However, you may wish to consider any statutory obligations as an employer that you may have in respect of redundancy events.

Employers who usually have access

NHS trusts and independent providers normally have access to the redundancy pension provisions of the NHS Pension Scheme. This is providing the member’s contract of employment includes redundancy provisions and will also determine who would be responsible for meeting any capitalisation costs.

Direction bodies and local authorities

Direction bodies and local authorities can have different types of access to the NHS Pension Scheme. In these cases, we would advise they get their own legal advice about their responsibility to meet the redundancy provisions of a member’s contract of employment. We cannot advise and can only give details of the member’s pension and the capitalised cost, if they meet the eligibility.