Terms and conditions of NHS trust chairs and non-executive directors

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We have a specific role in appointing and supporting NHS trust chairs and non-executives which does not apply to foundation trusts. These are public appointments made using powers delegated by the Secretary of State for Health.

NHS trust chairs and non-executive directors should contact our Non-executive Appointments team with any queries, or to notify them of any changes to their situation or connections during the period of appointment.

Appointment information PDF, 315.3 KB

Sets out important information about the terms and conditions under which our public appointments are made.

Remuneration and expenses

The level of remuneration paid to the chairs and non-executive directors of NHS trusts is set by the Secretary of State for Health. All NHS trusts are allocated to one of three remuneration bands, dependent on their turnover. The legislation governing the payment of chairs and non-executives means they can only be paid at the standard level. This also includes any work undertaken for the organisation's committees.  

Current rates of remuneration payable to chairs and non-executive directors

Chairs Non-executive directors
Band 1 £23,600 £6,157
Band 2 £21,105
Band 3 £18,621

Her Majesty’s Revenue and Customs (HMRC) has determined that chairs and non-executives are liable to pay income tax on their remuneration under Schedule E and Class 1 National Insurance Contributions (NIC). As a result, any tax liability and NIC will be deducted at source under the PAYE scheme. It isn't possible for chairs and non-executives to be paid their remuneration gross, unless the HMRC issues a nil tax code. It is for individuals to make any such personal arrangements with HMRC. 

Expenses information sheet PDF, 206.6 KB

Outlines useful details on expenses payable to NHS trust chairs and non-executive directors, as set by the Secretary of State for Health.

Indemnity

NHS trusts can indemnify chairs and non-executive directors who have 'acted honestly and in good faith' against personal liability incurred whilst carrying out their duties. This indemnity may also be extended to individual members of committees with delegated powers to make decisions or take actions on behalf of the board.  

Resignations

Non-executive directors can resign at any time by giving notice in writing to their chair or NHS Improvement. Where possible, chairs should first liaise with the relevant executive regional managing director within NHS Improvement and non-executive directors to agree a leaving date.  It is also helpful for us to understand the reason for the resignation in case there are any issues that should be addressed.

Suspension and removal from office

We've produced a policy setting out the principles and processes that we'll use to establish whether, and how, a chair or non-executive director of an NHS trust should be suspended or removed from office. The policy incorporates three separate but interconnected pathways: seeking a resignation, suspending the office holder and terminating the appointment.

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