Following the government’s acceptance of the Independent Review Body on Doctors’ and Dentists’ Remuneration’s (DDRB) recommendations, approximately 150,000 NHS doctors in England are now starting to receive their pay increases and backdated pay from accepted pay offers (resident doctors to receive backdated pay in November 2024). Pay increases apply to resident doctors, consultants, specialty and associate specialist (SAS) doctors, and dentists.
What does the pay increase mean?
- Resident doctors: Resident doctors will receive an on average 22.3%% pay increase from the 2022-23 pay scale. First-year doctors in training will consequently boost their basic salary from £29,384 to £36,616. Other increases will vary, depending on training grade of the doctor. Pay will be backdated to April 2023.
- Consultants: Consultants will see their pay scales increase by a minimum of 6%, bringing the starting basic full-time pay to £99,532. Pay will be backdated to April 1 2024.
Meanwhile, in Scotland, resident doctors secured a pay deal last year worth 12.4%, although negotiations for consultants are still ongoing.
This is undoubtedly good news for many doctors across the UK, but with increased earnings comes the need to reconsider financial protection. How many doctors have thought about reviewing their income protection policies to reflect this pay rise?
The importance of income protection for doctors
Income protection is a crucial financial tool designed to replace your income if you cannot work due to injury or illness. With families often reliant on this income, ensuring adequate protection should be a top financial priority for any doctor.
Key considerations:
- Increased earnings: With a higher salary, existing income protection policies might not provide adequate coverage for your current income level. It’s essential to review and adjust these policies to ensure they align with your new financial situation.
- Tailored policies for doctors: Due to the unique financial needs of doctors, it’s vital to have income protection policies tailored specifically for medical professionals. These policies should provide sufficient coverage during periods of illness or injury, especially considering the NHS’s sick pay scheme.
- Dovetailing with NHS Sick Pay: The NHS provides a maximum of six months of full pay followed by six months of half pay after five years of service. An income protection policy can complement this by kicking in when your NHS pay reduces or stops, ensuring continuous financial support.
- Protecting your family’s future: Income protection ensures that your mortgage, bills, and other living expenses are covered if you’re unable to work. This safeguard provides financial security and peace of mind for your family.
Steps to take now
Given the recent changes, it’s crucial to take proactive steps to protect your financial future:
- Consult a financial adviser: Independent financial advice is essential, as income protection policies vary significantly. A financial adviser with experience working with doctors can help you find a policy that fits your specific needs.
- Regularly review your policies: As your income and financial commitments evolve, regularly reviewing your protection policies ensures they continue to meet your needs and provide adequate coverage.
While the recent pay rise for NHS doctors is undoubtedly a welcome development, it also brings to light the importance of reassessing financial protection. Taking the time to review and adjust your income protection can provide peace of mind, knowing that your financial future is secure, even in unforeseen circumstances.
The information contained within this article is for guidance only and does not constitute financial advice.
Content correct at time of writing.