NHS: Redundancy Pay

Department of Health and Social Care written question – answered at on 18 March 2026.

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Photo of Michael Wheeler Michael Wheeler Labour, Worsley and Eccles

To ask the Secretary of State for Health and Social Care, whether his Department has made an assessment of the potential merits of giving the NHS Staff Council a mandate to negotiate NHS partial retirement and statutory redundancy payments with trade unions.

Photo of Karin Smyth Karin Smyth Minister of State (Department of Health and Social Care)

This specific assessment has not been made.

Partial retirement does not mean that National Health Service staff are ineligible for redundancy payments. However, taking partial retirement may change the way in which contractual redundancy payments are calculated.

The rules concerning the calculation of redundancy payments for NHS staff who have previously taken pension benefits, are determined in accordance with their contracts of employment, and statutory redundancy entitlements.

Contractual redundancy provisions for staff covered by the NHS terms and conditions of service handbook, also referred to as Agenda for Change, in England were agreed and ratified in partnership by the NHS Staff Council, the collective bargaining structure made up of trade union and employer representatives.

These provisions are set out under Section 16 of the NHS staff terms and conditions of service handbook. This section states that service used for the purposes of calculating previous pension benefits will not count for the calculation of a contractual redundancy payment. Statutory redundancy entitlements are unaffected.

The Department commissions NHS Employers to provide guidance for employers on a range of topics, including NHS redundancy arrangements and retirement options for NHS staff.

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Secretary of State

Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.

trade union

A group of workers who have united to promote their common interests.