Locums to cut fees to remain competitive after pension changes

Locums are forecast to reduce their fees in order to remain competitive in response to pension changes introduced this week, according to online marketplace rLocums.

53% of locums don’t pension their work, while 47% do.
53% of locums don’t pension their work, while 47% do.

From 1 April employers are now responsible for paying for the employer’s pension contributions when contracting locums.

GP Dr Steve Leung, medical director of rLocums, an online marketplace for practices and locums to find each other, said that its data prior to the change indicates 53% of locums don’t pension their work, while 47% do.

Dr Leung added: ‘Given that over half of locums do not require practices to pay the additional 14%, market forces will likely put pressure on locums who do pension their work to reduce their fees rather than increase them.

‘This is consistent with the feedback from rLocums' users that suggest locums are likely to reduce their fees in order to remain competitive.

‘It is also likely that many locums will seek to opt-out of the pension scheme altogether in order to maintain their earning.’

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