COMPLIANCE
Jerin Thomas MCIPP, Senior Payroll Professional, National Health Service (NHS) Humber Health Partnership, explains why the Government should announce uplifts to public sector pay at the start of the new tax year
E ach year, the question of public sector and pay increases in the Every year, the Government announces uplifts after the start of the tax year, promising that changes will be backdated to April. While this is happily welcomed by staff, it creates a persistent and avoidable challenge for NHS payroll departments, NHS returns to the national agenda. who are left hoping for the year when proactive, timely decisions finally arrive.
pay queries regarding Universal Credit, arrears, tax and other statutory deductions l national minimum wage checks and corrections in deductions l increased payroll pressure and pay error risks. Every additional manual step adds risk of error, takes up valuable time and diverts resources away from other essential payroll duties. August 2025: the storm of tasks hits its peak Though the experience may have varied between Trusts, most have encountered peak pressure in payroll this year when backdated pay announcements were made in August 2025. This period clearly demonstrated how backdated pay decisions amplify pressures on NHS payroll teams. Beyond implementing national pay awards and processing backdated adjustments, payroll professionals were simultaneously tasked with managing a series of complex additional demands, including: l processing numerous Junior Doctor starters and leavers – a standard process each August for all Trusts l pay adjustments arising from the industrial actions of Junior Doctors l staffing shortages linked to the school holiday period and childcare requirements, especially in July and August l processing / re-scheduling of the three-year automatic enrolment review of pensions for some Trusts l technology upgrades causing service interruptions and system updates l management of manager self-service system and roster errors – which is an ongoing issue l Locum Doctors’ pay corrections and other routine pay processes. Each of these responsibilities requires precision and accuracy. While pay increases are welcome news, delayed announcements confirming they’d be backdated to April as late as August put heightened pressure on NHS payroll professionals at an already incredibly busy time. Payroll departments are the silent backbone of the NHS. Accurate, timely
pay isn’t just a technical matter. It also underpins morale, wellbeing and retention across the health service. Yet, the concentration of critical tasks in August, when many payroll staff also balance family commitments, adds significant strain. That being said, any delay in pay decisions will hit the payroll team, regardless of the month. Implementing pay increases after April, when backdated, inevitably adds pressure to an already stretched payroll operation. Despite these pressures, payroll teams consistently deliver, often working under extreme time constraints to prevent errors. A practical step going forward would be to acknowledge this extraordinary workload and to change the timing of the confirmation of pay increases. Confirming pay increases in line with the start of the tax year would mean: l a reduction in the number of manual interventions and subsequently, a lower risk of payroll errors l lower administrative costs across the system l more confidence in staff being paid accurately and on time l acknowledgement of payroll’s role as a vital enabler of NHS functions l happier payroll staff in the NHS l a proactive and efficient Government, making timely decisions. Looking forward to 2026 with great hope The pattern is clear: over the past few years, NHS payroll professionals have faced significant challenges due to delayed pay decisions, which have meant they’ve had to work tirelessly to maintain continuity despite avoidable uncertainty. This recurring issue not only places undue pressure on payroll teams but also risks operational efficiency and staff wellbeing across the NHS. By confirming pay awards before the start of the tax year, the Government can mitigate backlogs, reduce administrative burdens and ensure both payroll teams and NHS staff are supported. April 2026 presents an opportunity to break this cycle and implement a more effective and predictable approach. n
“Payroll departments are the silent backbone of the National Health Service”
The cost and unseen impact of delayed decisions Late pay announcements place a major operational burden on payroll departments. Once the NHS pay rise percentage is confirmed every year, months after April, payroll professionals must check system- generated totals and recalculate many elements in salaries and deductions retrospectively and manually. These aren’t simple adjustments – they’re complex, resource-heavy processes which place additional strain on already stretched NHS payroll teams. Some of the activities which must be carried out manually on top of the system calculated processes are as follows: l checking back pay arrears on every member of staff’s record and potentially making corrections l manual corrections to the pay of impacted leavers l pension banding adjustment checks and manual corrections l multiple retro backdated running processes and rollbacks to include backdated pension calculations and increments l additional checks and manual inputs on under over and overpayments, and relevant tax and National Insurance corrections l manual adjustments to pay protections, maternity pay and other pay elements l multiple reports to check, and increased
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| Professional in Payroll, Pensions and Reward |
Issue 116 | December 2025 - January 2026
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