Average GP pay rises to £106,000

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GPs income has soared

GPs earned an average £106,000 during the first year of their new

contract, figures show.

Figures from the Information Centre for health and social care show

average earnings rose by 30% during 2004-05.

 

Ministers and NHS bosses expressed concern that so much of the new

money had apparently gone on pay, rather than on investment in

services.

 

But the British Medical Association said doctors had " well and truly

earned " their rise.

 

We want to see a higher proportion of practice income going on

service improvement for patients, and greater efficiency rather than

windfall profits

 

Lord Warner

Health Minister

 

 

Q & A: GP pay

 

GPs who worked in dispensing practices, which have a pharmacy

attached, earned an average of £128,000 after expenses - a rise of

31%.

 

Non-dispensing GPs earned an average of £102,000 after expenses - 30%

more than in 2003-04.

 

Incentives

 

The new contract, which ushered in radical changes to the delivery of

primary care services, was designed to give general practices

additional funds to invest in improving and developing services to

patients.

 

It included incentives to reward GPs and their practice teams for

driving up the quality of patient care.

 

A large proportion of GPs' earnings are now linked to the quality of

care they provide, with payments made for the provision of extra

services, such as contraception, child health and chronic disease

clinics.

 

The report, which looked at income from both NHS and private sources

for just under 18,000 family doctors, revealed that average total

earnings for GPs was £236,000.

 

Tax-allowable expenses on average accounted for 55% of overall

income, with GPs claiming 45% profit.

 

In 2003-04 GPs claimed 40% as profit, with 60% of overall income

invested back into the business - 5% more than in 2004-05.

 

Call for investment

 

Health Minister Lord Warner urged doctors to invest more of their

profits back into their business.

 

I believe UK general practice offers unbeatable value for money

 

Dr Hamish Meldrum

British Medical Association

 

He said: " We invested extra funding in GP services in good faith both

to improve services and reward GPs. The money was not intended just

to boost GPs' profits.

 

" We expect a higher level of these profits to be invested back into

their businesses, to bring about further improvements in services for

patients, such as longer opening hours or widening the range of

services.

 

" We want to see this year and next a higher proportion of practice

income going on service improvement for patients, and greater

efficiency rather than windfall profits. "

 

Dr Barbara Hakin, chair of the NHS Employers' team which negotiated

the new contract, said it had already started to produce benefits.

 

For example, in providing better information about the prevalence and

treatment of common conditions and in patients starting to get access

to a wider range of services in the community.

 

However, she said: " We are disappointed that investment in the

practice-based contract seems to have resulted in such significant

increases in individual GP income. "

 

Dr Hakin said negotiations had already begun on improvements to the

contract.

 

" We have already agreed that for 2006/07 that there would be no

inflationary uplift across the contract and that general practices

would need to demonstrate efficiencies, in the same way as other

parts of the NHS. "

 

Recruitment problems

 

Dr Hamish Meldrum, chairman of the BMA's GPs Committee, defended the

big increase in pay.

 

He said: " Prior to the introduction of the new contract, there were

serious recruitment problems and GPs¿ pay had fallen behind.

 

" This was officially recognised during negotiations and is reflected

in pay increases under the new contract.

 

" On top of this GP practices worked extremely hard to deliver the

Quality and Outcomes Framework targets in the new contract and have

reaped the benefit, as have their patients. "

 

Dr Meldrum added: " I believe UK general practice offers unbeatable

value for money and that GPs deserve every penny of their pay. "

 

" On average, patients see their GP about five times a year. It's a

well-used service that is appreciated by patients who trust their

family doctor.

 

" We don't discharge patients; it's potentially a lifelong

partnership. And it's right that the hard work and skill of GPs is

properly rewarded. "