Many GP practices are paying for locum insurance based on outdated NHS reimbursement rates, simply because no one has told them the rates have changed at renewal.
That matters more than most practices realise.
If your policy hasn’t been reviewed recently, you could be paying for cover you don’t actually need.
What this means in practice
When NHS reimbursement rates change, insurance policies don’t always move with them automatically.
If your locum reimbursement limit is still set against older figures, your premium may be calculated on cover levels that are lower than the NHS would now reimburse. The result? Unnecessary cost at renewal, often hidden in plain sight.
This isn’t about being underinsured. It’s about being accurately insured.
Why this happens
GP practices are busy. Reviewing NHS reimbursement updates is rarely top of the list when you’re managing clinics, staffing gaps, compliance, and day-to-day operations.
Some policies are only updated if a practice specifically asks for a review. If that doesn’t happen, cover and premiums can quietly roll over year after year, even when reimbursement rates have changed.
NHS locum reimbursement rates have changed
Over the past year, NHS sickness and absence reimbursement rates have increased across the UK. Not all at once, but often enough that relying on old figures can quickly put policies out of step with reality.
Rather than a dense table of premium shifts and statistics, here’s a simple snapshot of how rates have moved:
England
Aug 2024 → reimbursement increased
Mar 2025 → increased again
Jul 2025 → further increase
Wales
Dec 2025 → significant uplift introduced
Scotland & Northern Ireland
Rates updated for recent financial years but often still reflected inconsistently in older policies
These changes are good news, but only if your insurance policy has been reviewed alongside them.
The risk of not reviewing your policy
When policies aren’t updated:
- Your renewal may not reflect current NHS contribution levels
- You may be paying for cover that no longer fits how your practice operates
- Over time, small differences can become meaningful costs
Small differences at renewal can quietly add up over 12 months.
Why regular reviews matter
A simple check at renewal ensures your policy:
- Reflects current NHS reimbursement rates
- Aligns with actual locum costs in your area
- Avoids unnecessary premium spend
It’s not about stripping cover back, it’s about keeping it relevant and proportionate.
So what should you do?
If your policy renewed in the last 12 months, it’s worth checking whether your locum reimbursement still reflects current NHS rates. A quick review could prevent unnecessary costs.
If you’re unsure, please call the Practice Cover team and we’ll happily guide you to decipher your policy.
