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Digital

Publication, Part of

GP Earnings and Expenses - 2006-07, Initial report

Publication Date:
Date Range:
06 Apr 2006 to 05 Apr 2007

Summary

The latest GP Earnings and Expenses Enquiry provides a detailed study of the earnings and expenses of both contractor and salaried GPs in the UK in 2006/07, the third year of the new General Medical Services (nGMS) contract. Investment levels in 2006/07 were similar to 2005/06. Earnings and expenses figures for salaried GPs are provisional at this stage.

A further report (the Final Report) containing additional information on earnings and expenses by age of GP, practice size, Government Office Region and rurality, plus final figures for salaried GPs is expected to be published in early 2009.

This report has been agreed by the Technical Steering Committee (TSC), which is chaired by the NHS IC and has representation from the four UK Health Departments, NHS Employers and the British Medical Association.

A summary of the data used and analysed in this study is as follows:

  • earnings and expenses information are based on a sample from HM Revenue and Customs' (HMRC's) tax self-assessment database, as at May 2008. All analyses are carried out by HMRC statisticians on an anonymised dataset; only aggregate non-disclosive information is supplied to the NHS IC for publication.
  • all UK GPs (working in the NHS) for whom information are available, and who have an accounting year ending in the final quarter (i.e. between 1 January 2007 and 5 April 2007) are included in the sample.
  • figures for contractor GPs are based on their medical income from self-employment sources. Figures for salaried GPs are based on all income from employment sources and medical income from self-employment.
  • the results include earnings and expenses relating to both NHS and private work. It is not possible to provide a NHS/private split using this data source.
  • the results include earnings and expenses for both full-time and part-time GPs
  • the results for contractor GPs exclude an estimate of employer's superannuation contributions. This estimate will include any Primary Care Organisation (PCO) clawback or reimbursement for previous years (which would have occurred if the GP/PCO had either over or under-estimated predicted earnings for the year).
  • the results for salaried GPs are provisional. This is because we are currently investigating the effect of employee superannuation contributions on the gross earnings and income before tax of salaried GPs. Results for contractor GPs are before deduction of employee superannuation contributions. We will investigate whether it is possible to align the results for contractor and salaried GPs, in time for the Final Report. Comparable figures for earlier years are not available for salaried GPs due to methodological changes.

Highlights

Key findings from the report are split into the following four categories. These relate to NHS and private, full and part-time work:

  • Section A: National averages for contractor and salaried GPs

  • Section B: Country level breakdown for contractor and salaried GPs

  • Section C: Distributional results for contractor and salaried GPs

  • Section D: Time series on contractor GPs

Section A: National averages for contractor and salaried GPs

  • the average income before tax for contractor GPs in the UK in 2006/07, by contract type was:
    • £103,530 for those GPs working under a General Medical Services (GMS) contract (a decrease of 2.6 per cent since 2005/06).
    • £118,499 for those GPs working under a Primary Medical Services (PMS) contract (a decrease of 1.5 per cent since 2005/06).
    • £107,667 for those GPs working under either a GMS or PMS (GPMS) contract (a decrease of 2.1per cent since 2005/06).
  • the average gross earnings for GPMS contractor GPs in the UK in 2006/07 was £247,362 (an increase of 1.0 per cent since 2005/06).
  • the average expenses for GPMS contractor GPs in the UK in 2006/07 was £139,694 (an increase of 3.5 per cent since 2005/06).
  • the average income before tax for contractor GPs in the UK in 2006/07, by dispensing status was:
    • £99,580 for GMS non-dispensing GPs (a decrease of 3.0 per cent since 2005/06) and £124,045 for GMS dispensing GPs (a decrease of 0.7 per cent since 2005/06.
    • £115,655 for PMS non-dispensing GPs (a decrease of 2.1 per cent since 2005/06) and £135,546 for PMS dispensing GPs (an increase of 1.0% since 2005/06).
    • £104,093 for GPMS non-dispensing GPs (a decrease of 2.4 per cent since 2005/06) and £126,996 for GPMS dispensing GPs (a decrease of 0.1 per cent since 2005/06.
  • provisional figures show that the average income before tax for salaried GPs in the UK in 2006/07, by contract type was:
    • £49,779 for GMS GPs.
    • £52,328 for PMS GPs.
    • £50,999 for GPMS GPs.
  • provisional figures show that the average gross earnings for GPMS salaried GPs in the UK in 2006/07 was £57,189.
  • provisional figures show that the average expenses for GPMS salaried GPs in the UK in 2006/07 was £6,190.
  • contractor GPs have additional responsibilities, covering clinical, organisational, operational, financial and personal responsibility for provision of GP services not borne by salaried GPs. On average, contractor GPs work more hours than salaried GPs. These factors are reflected in their average earnings.

Section B: Country level breakdown for contractor and salaried GPs

  • the average income before tax for GPMS contractor GPs in 2006/07, by country was:
    • £111,566 in England (a decrease of 1.8 per cent since 2005/06).
    • £93,316 in Northern Ireland (a decrease of 5.4 per cent since 2005/06).
    • £89,468 in Scotland (a decrease of 1.3 per cent since 2005/06). PMS GPs are referred to as Section 17c in Scotland.
    • £97,772 in Wales (a decrease of 4.3 per cent since 2005/06).
  • provisional figures show that the average income before tax for GPMS salaried GPs in 2006/07, by country was:
    • £51,105 in England.
    • £50,160 in Scotland.
    • £48,342 in Wales.
    • no information is available on salaried GPs in Northern Ireland.

Section C: Distributional results for contractor and salaried GPs

  • in 2006/07 for UK GPMS contractor GPs it is estimated that:
    • 2,048 GPs (6.0 per cent) had an income before tax of up to £50,000. In 2005/06, this figure was 2,001 (5.9 per cent).
    • 13,387 GPs (39.5 per cent) had an income before tax of between £50,000 and £100,000. In 2005/06, this figure was 12,342 (36.4 per cent).
    • 13,832 GPs (40.8 per cent) had an income before tax of between £100,000 and £150,000. In 2005/06, this figure was 14,534 (42.9 per cent).
    • 3,623 GPs (10.7 per cent) had an income before tax of between £150,000 and £200,000. In 2005/06, this figure was 3,876 (11.4 per cent).
    • 739 GPs (2.2 per cent) had an income before tax of between £200,000 and £250,000. In 2005/06, this figure was 816 (2.4 per cent).
    • 258 GPs (0.8 per cent) had an income before tax of at least £250,000. In 2005/06, this figure was 307 (0.9 per cent).
  • dispensing doctors are distributed towards the higher ends of the distribution of income before tax, compared with non-dispensing GPs.
    • provisional figures show that in 2006/07 for UK GPMS salaried GPs:
    • 2,664 GPs (52.6 per cent) had an income before tax of up to £50,000.
    • 2,207 GPs (43.6 per cent) had an income before tax of between £50,000 and £100,000.
    • 196 GPs (3.9 per cent) had an income before tax of at least £100,000.

 

Section D: Time series on contractor GPs

  • the report presents information on contractor GP earnings between 1971/72 and 2006/07. Data are presented in both cash terms and in 2006/07 real terms using GDP deflators published by Her Majesty's Treasury. As 2006/07 has been used as the base year, the cash and real terms amounts in 2006/07 are identical. Comparisons below focus on the changes since 2002/03, prior to the new contract being introduced.
  • when interpreting the figures it is important to note that the nature of GP contracts and their work has also changed over time. Since the start of the nGMS contract in 2004/05, there have been some major changes to income and workstreams and investment in general practice. Earnings information represents just one element of understanding change over time.
  • in 2006/07, GPMS GPs had an average income before tax of £107,667. In 2002/03 their average income before tax was £72,716 in cash terms, equivalent to £80,420 in real terms. This is equivalent to an annual percentage increase of 7.6 per cent per year throughout the period in real terms.
  • In 2006/07, GMS GPs had an average income before tax of £103,530. In 2002/03, their average income before tax was £69,771 in cash terms, equivalent to £77,163 in real terms. This is equivalent to an annual percentage increase of 7.6 per cent per year throughout the period in real terms.
  • In 2006/07, PMS GPs had an average income before tax of £118,499. In 2002/03, their average income before tax was £85,019 in cash terms, equivalent to £94,026 in real terms. This is equivalent to an annual percentage increase of 6.0 per cent per year throughout the period in real terms.
  • The average expenses to earnings ratio (EER) is higher among PMS than GMS GPs. The difference between the respective EERs has grown from 0.2 percentage points in 2002/03 to 2.9 percentage points in 2006/07.

Resources

Last edited: 14 January 2022 3:53 pm