NMC consults on registration fees
The Nursing and Midwifery Council is consulting from end-October to mid-February on aspects of its finances, including the registration fee. This briefing is designed to explain to parliamentarians the background to the substantial fee increase to be paid by nurses, midwives and health visitors.
The NMC came into office in April 2002. During its first year of operation, the Council conducted a thorough review of its finances and implemented a number of cost savings, including bringing IT and the call centre in-house. However, despite these significant measures, it is necessary to increase the three-yearly registration fee from 60 to144 from August 2004. This is equivalent to 48 a year.
The fees consultation explains the background to our current financial situation and the steps now being taken to rectify the problems. It details the rationale for the proposed increase and sets out the four principles that underlie the calculation of the new registration fee. We are seeking views on these principles:
- The cost of providing professional self regulation must be covered by income generated
- Fees charged should be sufficient to recover past shortfalls and restore financial health
- Fees charged should cover inflation until 2010 but be offset by targeted productivity and efficiency savings
- Fees charged should be sufficient to cover future growth in regulatory activity.
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Moving to annual payment
We are also seeking views on additional proposals concerning a possible move to annual payment of the registration fee from 2006 and transitional support for newly qualified nurses and midwives, which would see them pay £96 rather than £144 if registering for the first time between 1 August 2004 and 31 December 2005 - after which annual payment would come in.
For the past 10 years, the registration fee has not been sufficient to cover the cost of professional self regulation.The NMC's predecessor, the UKCC, had to make up the shortfall from its reserves. These reserves have been in decline since 1997/98 when the stockmarket fall started. Charging less than the full economic cost of providing a service for a decade is not sound financial governance. Yet this shortfall amounts to over £4.5 million each year. This is clearly unsustainable and the NMC has no alternative but to redress this position or else risk insolvency.
The consultation document shows where every pound of the new registration fee will be spent. The NMC has arrived at the 48 per year fee after months of careful financial planning and discussion about current and future costs associated with providing registration and implementing our statutory responsibilities.
Key points
The NMC registration fee can be claimed against tax. This means that the net cost of the proposed new fee, after tax relief, is reduced to 112, or 37 per year.
Even after the registration fee is increased, nurses, midwives and health visitors will pay the lowest amount for their licence to practise - both in real terms and as a proportion of earnings - of any of the regulated health professions. Other health professionals pay between £60 and £1,000 a year to their regulatory bodies.
For further information, please contact:
Stuart Skyte, Head of Communications,
Tel: 020 7333 6558
E-mail: stuart.skyte@nmc-uk.org
October 2003
