The National Health Service (Fund-holding Amendment Regulations 1998 Practices)

Redundancy payments

10.—(1) In regulation 23 of the principal Regulations (payment for management expenses)—

(a) in paragraph (2), after “management expenses” insert “other than on the expenses referred to in sub-paragraph (7)(j)”;

(b) in paragraph (7), at the end of sub-paragraph (h) omit “and”, and at the end of sub-paragraph (i) insert—

“; and

(j) the costs of redundancy payments to staff employed in connection with the management of the allotted sum (but only to the extent that such payments could be made by virtue of paragraph 52(3)(vi) of the Statement referred to in regulation 22(2)).”.

(2) In regulation 25 of the principal Regulations (savings from the allotted sum), in paragraph (2), for “22 and 24” substitute “22, 23(7)(j) and 24”.

(3) After regulation 25 insert—

“Redundancy payments

25A.— (1) Where the members of a fund-holding practice apply any part of the allotted sum for the purposes of paying redundancy payments under regulation 22 or 23(7)(j), they shall secure that for the purpose of making any such payment the allotted sum is applied in the following order—

(a) first, the payment is to be met (to the extent that it is permissible to do so under regulation 23) from the available management allowance for the financial year in which the payment is made (“the current year”);

(b) the payment is then to be met from available savings; and

(c) only then is the payment to be met from any other part of the current year’s allotted sum.

(2) In paragraph (1), “available” means free from any binding obligation to apply for other purposes (but savings are not “available” if the Health Authority has consented in accordance with regulation 25(2) to their application for a purpose for which consent is required, even if no binding obligation to apply them for that purpose has yet been entered into).”.