4 How GPs' pay is determined

How the Review Body system works

General practitioners' remuneration

Expenditure that is fully and directly reimbursed

Expenditure that is partially directly reimbursed

Indirectly reimbursed expenditure

General practitioner accounts

The National Health Service (Primary Care) Act 1997

The Doctors' and Dentists' Review Body was set up in 1960, as a consequence of the recommendations of a Royal Commission known as the Pilkington Commission. Its remit is to recommend to the Prime Minister the levels of remuneration of doctors (and dentists) working in the NHS.

  The Pilkington Commission was concerned to ensure that doctors' pay should not be used as a means of regulating pay movements in the economy; it wanted to see their pay removed from the political arena. The Commission considered various options, including direct negotiations, collective bargaining through Whitley machinery (used by most health service employees), and arbitration. It recommended an independent review body and laid down its ground rules (see Box 4.1).

Box 4.1: The Review Body's ground rules

• the Review Body's main task was to exercise 'good judgement'

• although the government had the ultimate power to decide, Review Body recommendations must only be rejected by government very rarely, and for most obviously compelling reasons

• government should deal with Review Body recommendations promptly

• the remuneration of doctors should be determined primarily, though not exclusively, by external comparison with other professions and similarly qualified employees

• doctors should not be used by governments as part of their machinery for regulating the economy; they have a right to be treated fairly and the profession should assist the Review Body by willingly providing information about earnings

• doctors' earnings should not be determined according to short-term supply and demand considerations

Book Title: Making Sense of The Red Book