The outgoing Labour government overturned the DDRB's recommended rise of 1.34 per cent, which aimed to allow GMS GPs to cover the cost of rising expenses.
Reducing the pay award to 0.8 per cent means GPs must find a 1 per cent 'efficiency saving' in expenses to protect profits.
GPC deputy chairman Dr Richard Vautrey said the GPC had hoped the coalition government would reverse the decision and implement the DDRB's recommendation in full.
A DoH spokesman confirmed the coalition government will not renegotiate the terms of the 2010/11 agreement. Neither the GPC nor the DoH would reveal how the pay award is to be distributed as GP went to press.
Under Labour, the DoH said it would use a DDRB formula that meant most MPIG practices would see only half of the pay rise (GP, 9 April).
Only GMS practices that do not rely on MPIG would receive the full 0.8 per cent rise under the deal.
The remaining 68 per cent of practices would see up to half of their pay award disappear through reductions in correction factor payments.
The GPC has submitted alternative proposals on how to distribute the cash after the DoH 'interfered' with the recommended award.