News / NHSI reveals FD pay ranges

The figures are included in wider guidance on very senior manager (VSM) pay, which also offers indicative salaries for nine other senior roles, including chief executive and chief operating officer. The oversight body insisted that the figures it has produced, which would apply to all on-payroll appointments at NHS trusts and foundation trusts, are still under discussion and are liable to change. However, any change up or down will not be enforced retrospectively, it said.

The indicative salaries are to be used by NHS trusts seeking approval for VSM appointments and are being published ahead of a new VSM pay framework that is being put together by the Department of Health.

An annex on established pay ranges in different types of trusts shows a lower quartile pay of £102,500 for finance directors in both small mental health trusts (up to £200m turnover) and community trusts. The upper quartile pay for both types of trusts would be £122,500.

In larger mental health trusts (more than £200m turnover), directors of finance could expect between £125,000 and £149,000.

The pay range in ambulance trusts would be £103,500 to £120,000.

The starting point for a finance director in a small acute trust or foundation trust (under £200m turnover) would be £109,000, with pay of £137,500 at the top of the scale. In medium-sized acutes (£200m-£400m), finance directors could expect between £123,000 and £147,500. In acute trusts with between £400m and £500m turnover, the range would be £126,000 to £155,000, while their counterparts in very large acutes (more than £500m turnover) could get between £148,500 and £190,000.

Specialist acute trusts, which fall in the sub-£400m turnover category, could apply for a 15% premium on the pay ranges, while mental health trusts with high secure psychiatric hospitals would be able to apply for a 10% premium.

In the guidance, NHS Improvement said trusts should refer to the VSM pay framework when it is published by the Department of Health. This is due soon.

In the meantime, NHS trusts must seek the approval of the Department, the Treasury, minister of state for health and NHS Improvement before confirming salaries of more than £142,500 when making on-payroll appointments. They will also need this approval if they plan a VSM pay increase outside the national cost of living increase where the salary will be more than £142,500. The process for foundation trusts is slightly different as they are free to set their own pay – they should, however, seek the opinion of NHS Improvement, the Department and the minister of state. NHS ambulance and community trusts should get approval for all on-payroll VSM appointments.