Mutually Agreed Resignation or Voluntary Severance schemes

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This provides an update on Mutually Agreed Resignation (MAR) or Voluntary Severance (VS) schemes for foundation trusts.

1. Conditions of the updated process for schemes

  1. Each scheme is to be on the terms of the past national NHS Mutually Agreed Resignation (MAR) scheme (subject to 2 below)
  2. Each scheme is a re-run of a previous scheme based on the these criteria and for which HMT approval had been obtained 
  3. Each scheme to apply a salary cap of £80k i.e. for staff with total earnings of more than £80k, the figure used for calculating a MARS payment will be £80,000; and
  4. Each individual payment is not to be greater than £80,000 in respect of any individual
  5. Each scheme is not to operate for more than 3 months in duration
  6. Each scheme is to be appropriately considered and authorised by the trust’s board
  7. Each scheme is to be notified to NHS Improvement , the sector regulator for healthcare, in advance

If a proposed trust scheme meets conditions 1-6, the trust does not require permission from HM Treasury (HMT) but can go ahead subject to informing us formally (condition 7). Please inform your regional management team at Monitor and NHSI.compliance@nhs.net 

2. What to do if a proposed scheme does not meet the conditions

If a proposed trust scheme does not meet these conditions, and the trust is unwilling to amend it to meet those conditions, then the trust will require explicit authorisation from HMT and will need to submit to Monitor the following:

  • the proposed scheme terms
  • a schedule of differences between their proposed scheme and the past national NHS MAR scheme (and stating if condition 3 is met or not met)
  • the proposed duration of the scheme

We will then pass on the request for authorisation to HMT, who will decide. Again please submit such requests to your regional management team at NHS Improvement and NHSI.compliance@nhs.net .

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