Here's some rough calculations for you:
2011/12 funding rose by 1.6% or £40m
Now at face value you think, well its an increase but now lets add in the fact that prescription volume rises on average by 5% each year. So immediately you'll see that we are in fact going to be making minus 3.4% this coming year or a reduction of £84million to our contract funding as a basic.
Then we add in the restriction in Cat m profitability. Which as stated will claw back a total of £98mil over the next 12months. And thats assuming that the "annual reduction of £40m per annum from April 2012" constitutes £10mil per quarter and not the full £40m during those last 6months.
So in summary what i see is a contract that will in fact reduce our pay by a staggering £182million year on year or a ridiculous 7% cut in real term funding. One of the largest drops in our funding for a number of years.
So once again a really well done to the PSNC negotiating team, you have truly out done yourselves this time. And I note how well the cost of goods inquiry was used in helping us show the government that further reductions in pay would be disastrous and totally unfair to contractors.
What a major disappointment, but I guess after so many years of working with this ridiculous and out dated contract I should be used to the disappointment.
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