Scott Sanderson
Partner
If you're a GP partner or practice manager, you are probably wondering, what does the new GP contract mean for us?
Hawsons Healthcare Partner, Scott Sanderson says: ‘The 2025/26 GP contract is not just another policy shift, it will directly affect how much funding your practice receives, how income flows through the business, and ultimately what partners can draw.’
For many GP practices, this means reviewing your structure, staffing and financial planning.
The bigger picture: more funding, more complexity
The new GP contract for 2025/26 includes an additional £889 million of investment across the core practice contract and the Network Contract Directed Enhanced Service (DES).
Whilst the investment increase is significant, this contract is also looking to rebalance how practices are expected to earn. A sizeable chunk of QOF income has been removed, and practices will need to lean more heavily on Global Sum payments, enhanced services, and the Additional Roles Reimbursement Scheme (ARRS).
The aim is to streamline services and free up capacity, but the shift will require active planning, particularly around staffing and partner income.
What this means for practice income
- Global sum increase
The Global Sum per weighted patient is going up, reflecting the overall rise in core contract funding. This will mean more predictable income for most practices, especially those with large or growing patient lists.
- End of protected QOF income
Around 212 QOF points that were income-protected in 2024/25 are now being removed permanently. This is a significant change. If your practice relied on those indicators, there will be a visible drop in that income line.
Some of this money has been redistributed into the Global Sum and targeted areas such as cardiovascular disease prevention. Therefore, you may need to adjust your care model, or your practice could miss out on significant funding.
- New enhanced services
A notable addition to the GP contract is the Advice & Guidance enhanced service, which will pay £20 per request when GPs provide pre-referral input to consultants. There’s up to £80 million available nationally here and could become a meaningful income stream for practices who engage with it.
- ARRS and workforce costs
The ARRS scheme is expanding to cover newly qualified GPs and practice nurses, giving practices more flexibility in how they grow their teams.
This could ease some staffing costs, but it also brings the challenge of managing larger, multidisciplinary teams with the impact that has on training, supervision, and longer-term payroll obligations.
How will GP partner drawings be affected?
- Changing income mix
With less funding coming from QOF and more being tied to enhanced services or team-based delivery, drawings may become less predictable unless income planning adjusts accordingly.
- Workforce model matters
If you take on more staff through ARRS but don’t claim back correctly or manage supervision time well, you may see income being absorbed by internal costs. On the flip side, practices that use ARRS roles well may reduce pressure on GPs and protect profitability.
- Investment vs profit
Some practices will need to invest in systems, digital access tools, and new roles to meet the contract requirements. That means some cash may be committed before the return is fully realised. This can affect short-term drawings unless managed carefully.
What practices should do now
- Review your income streams
Take a fresh look at how your income is currently structured including QOF, Global Sum, enhanced services, and ARRS reimbursement and start modelling how this is likely to change from April.
- Reforecast partner drawings
Use updated assumptions based on the new funding rates, staffing plans, and expected service delivery. This is a good time to reset expectations and avoid surprises later.
- Rethink your ARRS strategy
Consider which roles genuinely add value to your practice and patients, and how best to supervise and integrate them. One size will not fit all.
- Plan ahead
With so many moving parts, cashflow forecasting, tax planning, and reserve management are more important than ever. Practices that plan early will be in a stronger position to adapt.
How We Can Help?
We’re working with practices across the country to help them understand the 2025/26 GP contract changes and plan with confidence.
From partner drawings and profitability to workforce planning and tax, we’re here to help you see the full picture and make the most of the opportunities available.
If you’d like to talk through what this means for your practice, we’re always happy to help.
Contact us by filling in the contact form below
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