NHS: Redundancy Pay

(asked on 17th December 2025) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what assessment his Department has made of the potential impact of partial retirement for NHS staff on redundancy entitlements; and what discussions his Department has had with NHS representatives on ensuring staff were informed of the employment and redundancy implications of partial retirement.


Answered by
Karin Smyth Portrait
Karin Smyth
Minister of State (Department of Health and Social Care)
This question was answered on 7th January 2026

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.

Redundancy terms for NHS staff on the Agenda for Change contract are set out under section 16 of the NHS Staff Terms and Conditions of Service handbook. This also applies to NHS staff whose redundancy terms refer to section 16. 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.

Reticulating Splines