Pay-for-performance: clear, simple and wrong – What’s your opinion?

The use of pay-for-performance initiatives in a bid to improve standards of care within the NHS remains a matter of controversy, not least because such schemes threaten to undermine our trust in public servants to do the best for those they serve.

Umbrella Company vs. PAYE?

Many NHS nurses are paid through an umbrella company, rather than through a limited company’s payroll.

An Umbrella Company will deduct necessary PAYE and NI contributions and then you will receive your salary. Both ways, you don’t need to worry about keeping detailed accounts.

However, an umbrella company works with accountants to calculate tax relief/business expenses, which could lead to greater take-home pay.

Most Money works with 20 of the top 25 healthcare agencies in the UK to provide a caring service with prompt payment.

As well to this, you get many benefits working for an umbrella company.

An umbrella company will hire you under a contract of employment, giving you a record of continuous employment which helps when applying for mortgages or loan applications.

Studies that have been conducted

A growing body of research suggesting these programmes do not work has not helped their standing. Our evaluations of new incentive structures in contracts for GPs, pharmacists and dentists suggest these have not produced the benefits that policymakers hoped for.

Yet the Department of Health has pressed ahead with pay-for-performance (PfP) schemes aimed at changing the practices of other groups of staff, including hospital doctors and nurses.

Since these are public employees, a slightly different approach has been required – one that links performance to organisational rather than personal income.