How Wessex LMCs is Funded?
Page Contents
The Statutory Levy
All LMCs are funded by a statutory levy. This amount is collected from practices and is based on an amount per patient. It is currently 51p per patient across all three of our Committee areas. This is reviewed annually by the Wessex LMCs Board who make a recommendation to the three elected Committees (Hampshire & IoW, Dorset and Bath and NE Somerset, Swindon & Wiltshire). The three Committees are then responsible for deciding whether to agree to the Board’s recommendation for their area, taking into account all of the information made available to them by the Board of Wessex LMCs Ltd.
This money funds the office and officers of the LMC to deliver all the services and support that you have come to expect from Wessex LMCs. It also funds the three representative Committees with representatives being paid per attendance and reimbursed travel expenses. The levy is collected by the LMC from ICBs directly rather than from practices, and it can normally be seen as a debit in practices end of year accounts.
The Board and the Committees are always mindful of the financial stewardship of Wessex LMCs Ltd as your representative body, and decisions regarding funding are analysed in a diligent and thorough manner. The financial positions of GP practices are also reviewed in the decision making process, alongside the current financial environment of the UK.
The National Levy
In addition to the statutory levy, the LMC also collects a national levy. This is a separate levy which is collected to fund the National Negotiating Committee (GPC) and the GP Defence Fund (GPDF) and supports national negotiations regarding General Practice.
This rate is set by the GPDF and is also based on an amount per patient. It is currently set at 5p.
A Brief Guide to the General Practitioners Defence Fund Levy
Introduction
The General Practitioners Defence Fund (GPDF), established in 1911, supports GP negotiations with the Government. It is a company limited by guarantee, with members drawn from the voting members of the GPC. The fund primarily finances GP representatives working on the GPC and its national subcommittees, as well as the Annual Conference of LMCs, which is the main forum for accountability. It also covers professional advice and contributes to legal challenges of national importance. The GPDF works closely with the BMA but is not a registered trade union.
The Levy
The GPDF is funded through an annual levy on LMCs, calculated on a pence-per-patient basis using local population figures. This levy is payable each April and is supplemented by investment income.
Collecting the Levy
LMCs are informed annually of their required contribution and decide how to raise the funds locally. As the total contribution is fixed regardless of participation, it is important that as many practices as possible contribute. The levy is tax deductible.
Further Information
The GPDF and GPC welcome queries from LMCs; initial contact should be via the GPC secretariat.