Accountability report
The accountability report consists of four sections.
Corporate governance report
This explains our governance structures and how they support us to achieve our objectives. It includes the directors report, statement of accounting officer’s responsibilities and our annual governance statement.
Remuneration and staff report
The remuneration and staff report explains the pay of Board members, independent members and senior employees that Parliament and other users see as key to accountability. It also includes details on staff costs, sickness and our equality, diversity and inclusion data.
Parliamentary accountability and audit report
The key parliamentary accountability documents in the annual report and accounts.
Certificate and report of the Comptroller and Auditor General to the Houses of Parliament
Corporate governance report
Directors’ report
The HRA is a non-departmental public body, established in accordance with the Care Act 2014 and sponsored by the Department of Health and Social Care (DHSC).
Our relationship with DHSC, acting on behalf on the Secretary of State, is regulated by a Framework Agreement. This sets out:
- the respective roles and responsibilities of each organisation
- the shared principles that underpin our relationship
- the arrangements for ensuring DHSC can fulfil its responsibilities
This agreement also explains our governance arrangements, how we are accountable for our performance and how DHSC measures our performance without being involved in our day-to-day decision making.
The DHSC’s Science, Research and Evidence Directorate acts as our sponsor and provides assurance to DHSC Permanent Secretary and the Secretary of State that we are meeting our obligations.
The HRA is fully compliant with relevant principles around governance best practice for public service as set out in 'Corporate governance in central government departments: code of good practice 2017'.
![Governance Structure.png](https://s3.eu-west-2.amazonaws.com/www.hra.nhs.uk/media/images/Governance_Structure.original.png)
HRA Board
We are governed by a Board that is our corporate decision-making body.
The Board gives strategic oversight, agrees high level policy and ensures the HRA is run effectively and efficiently. It is made up of our Chair, Professor Sir Terence Stephenson, our Chief Executive, Dr Matt Westmore, two executive directors and four non-executive directors.
Two directors attend the Board as non-voting members.
Biographies and declarations of interest of all our Board members are available on our website.
Name | Role | Role | Term of Appointment |
Professor Sir Terence Stephenson | Non-Executive Director | Chair of Board and Pay and Remuneration Committee | 1 Sep 2019 – 31 Aug 2025 |
Richard Cooper | Non-Executive Director | Chair of Audit and Risk Committee | 1 Feb 2019 – 31 Jan 2025 |
Professor Andrew George | Non-Executive Director | 1 Jan 2019 – 31 Dec 2024 | |
Dr Nicole Mather | Non-Executive Director | 1 Jan 2019 – 31 Jul 2023 | |
Neelam Patel | Non-Executive Director | 1 Apr 2021 – 31 Mar 2027 | |
Dr Janet Messer | Executive Director | Director of Approvals | From 15 Sep 2014 |
Becky Purvis | Executive Director non-voting | Director of Policy and Partnerships | From 27 Jun 2022 |
Julie Waters | Executive Director non-voting | Chief Digital Transformation Officer | From 1 Aug 2022 |
Professor Matt Westmore | Executive Director | Chief Executive | From 22 Feb 2021 |
Karen Williams | Executive Director | Deputy Chief Executive and Director of Resources | From 5 Jan 2017 |
We are committed to openness and transparency with our Board meetings, which are held in public with all the papers and minutes available on our website.
The Board monitors performance every three months by reviewing performance reports. These reports enable the Board to scrutinise performance against agreed metrics, check progress in delivering our business plan and change portfolio, and examine our financial performance and strategic risk register.
Our reporting also includes an assessment of progress made in achieving our strategy.
The Board is supported by three sub-committees:
- the Audit and Risk Committee
- the Pay and Remuneration Committee, and
- the Community Committee (established in 2023-24)
Audit and Risk Committee
This committee advises the Accounting Officer and Board on risk management, corporate governance, and assurance arrangements. It comprises three non-executive directors and two independent members. Individuals from the HRA and Government Internal Audit Agency are invited and regularly attend the committee. The National Audit Office and KPMG, as external auditors for the HRA, also attend each meeting.
Pay and Remuneration Committee
This committee makes decisions on senior executive salaries, their performance related pay and other terms and conditions. It also reviews arrangements for termination of employment, including termination payments. It is made up of the Chair of the Board and four non-executive directors.
Community Committee
We understand it is important to listen to and involve a diverse group of people in our work, to better reflect the society that we serve and increase their involvement in the decisions that we make. This committee has responsibility for supporting the HRA’s strategy to make it easy to do research that people can trust, and advises the Board on any issues, developments, proposals or policies which may impact on our community.
It comprises one non-executive director and eleven members of the HRA Community - four members of Research Ethics Committees, one member of the Confidentiality Advisory Group and six members of the public. Biographies of Community Committee members can be found on our website.
Executive Committee
The Executive Committee is the senior executive decision-making body responsible for managing our business within agreed objectives, funding, and our Framework Agreement. The Executive Committee is accountable to the Chief Executive. It is chaired by the Chief Executive and has eleven members. It is responsible for ensuring an effective connection between executive to Board business and the formulation of HRA strategy.
The Executive Committee has delegated responsibility to individual directors for the management of day-to-day organisational business, and to the Portfolio Delivery Group for the management of the HRA’s change activities. These are within agreed objectives, funding, and according to the HRA/DHSC Framework Agreement and standing orders.
Name | Role | Role | Board* | Audit and Risk Committee* | Pay and Remuneration Committee* |
Professor Sir Terence Stephenson | Non-Executive Director | Chair of Board and Pay and Remuneration Committee | 4/4 | 1/1 | |
Richard Cooper | Non-Executive Director | Chair of Audit and Risk Committee | 3/4 | 5/5 | 0/1 |
Professor Andrew George | Non-Executive Director | 4/4 | 5/5 | 1/1 | |
Dr Nicole Mather (until 31/07/23) | Non-Executive Director | 1/1 | 0/0 | ||
Neelam Patel | Non-Executive Director | 4/4 | 5/5 | 1/1 | |
Dr Janet Messer | Executive Director | Director of Approvals | 4/4 | ||
Becky Purvis |
Executive Director non-voting |
Director of Policy and Partnerships | 4/4 | ||
Julie Waters |
Executive Director non-voting |
Chief Digital Transformation Officer | 3/4 | ||
Professor Matt Westmore | Executive Director | Chief Executive | 4/4 | ||
Karen Williams | Executive Director | Deputy Chief Executive and Director of Resources | 4/4 | ||
Nick Longhurst (from 01/06/23) |
Independent member of Audit and Risk Committee | 4/4 | |||
George Ritchie | Independent member of Audit and Risk Committee | 5/5 |
*Key: x/y: x is number of times the individual attended the Board or committee meetings and y is the number of meetings held.
Highlights of Board meetings in 2023-24
During 2023-24 the Board and its committees considered key strategic issues and routine business planning. The topics considered included:
- performance reports, including finance reports, updates on change portfolio dashboard and improvement activities, strategic and key operational risks and risk appetite for the organisation
- updates from the Audit and Risk Committee and Community Committee
- feedback from Staff Voices representatives on staff-related matters
- Research Ethics Service in England annual report
- Confidentiality Advisory Group annual report
- annual staff survey findings report and action plan
- updates on our People Strategy and Equality, Diversity and Inclusion Strategy and future plans
- business continuity annual report
- updates to our risk management process
- our achievements and key messages for stakeholders
- Board effectiveness review
- Board meetings and public involvement
- NED succession planning
The Board improves its performance and effectiveness through seminars. During 2023-24 these included:
- update on progress of our Strategy
- plans for developing our next Strategy
- business planning and priorities
- setting the vision for the Research Systems Programme
- proposals and progress of the Research Systems Programme
- Board effectiveness review
- any expenses claimed by Board members are published on the HRA website, alongside minutes and papers from the Board meetings.
Summary of the Board effectiveness review
We conducted an internal Board effectiveness review in March 2024. This was administered via an anonymous survey, with questions based on the Cabinet Office guidance on board effectiveness reviews, and an in-person board seminar. The Board agreed the requirements of the Code of Good Practice for Corporate Governance, where relevant for the HRA as a Non-Departmental Government Body, are being met and the required responsibilities are being suitably carried out. Several opportunities to improve the effectiveness of the Board were identified, including:
- supporting board succession planning
- further work on horizon scanning to develop the forward planner of strategic seminars
Statement of Accounting Officer’s responsibilities
Under the Care Act 2014, Section 109 (Schedule 7, paragraphs 19 and 20) the Secretary of State has directed the HRA to prepare a financial statement of accounts for each year in the form and on the basis set out in the Accounts Direction. The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the HRA and of its income and expenditure, statement of financial position, and cash flows for the financial year.
In preparing the accounts, the Accounting Officer is required to comply with the requirements of the Government Financial Reporting Manual issued by HM Treasury and in particular to:
- observe the Accounts Direction issued by the Secretary of State, with the approval of HM Treasury, including the relevant accounting and disclosure requirements and apply suitable accounting policies on a consistent basis
- make judgements and estimates on a reasonable basis
- state whether applicable accounting standards as set out in the Government Financial Reporting Manual have been followed and disclose and explain any material departures in the accounts
- prepare the accounts on a going concern basis
- confirm that the annual report and accounts as a whole is fair, balanced and understandable
- confirm that the Accounting Officer takes personal responsibility for the annual report and accounts and the judgements required for determining that it is fair, balanced and understandable
The Accounting Officer for DHSC has appointed the Chief Executive as Accounting Officer for the HRA.
The responsibilities of an Accounting Officer are set out in Managing Public Money published by the HM Treasury. These include responsibility for the propriety and regularity of the public finances, for keeping proper records and for safeguarding HRA’s assets.
As far as the Accounting Officer is aware, there is no relevant audit information of which the entity’s auditors are unaware and the Accounting Officer has taken all the steps that they ought to have taken to make them aware of any relevant audit information and to establish that the entity’s auditors are aware of that information.
Risk management system
We want to make the most impact from our operations within our available resources. An effective risk management system supports this without stopping innovation. This requires considering a full cross section of risks we face including reputational risks, financial risks, organisational risks, health and safety risks and risks to the achievement of the organisation’s objectives.
![The risk and control framework and capacity to handle risk.png](https://s3.eu-west-2.amazonaws.com/www.hra.nhs.uk/media/images/The_risk_and_control_framework_and_capcity_to_h.original.png)
There are four types of risk managed by the organisation:
- Internal: these are risks which the HRA has some control and are predominantly the directorate risk registers
- External: these are big external events/perils and are captured on the HRA threat assessment.
- Strategic: these risks relate to our key business objectives and captured in the strategic risk register.
- Main Project/Programmes: this register contains risks related to our most critical projects and programmes.
The HRA risk management framework ensures that the Board receives regular reports on the Strategic risks. Any significant risks are captured on the Corporate Risk Register and escalated to the Audit and Risk Committee and Executive Committee for discussion, and the HRA Board and DHSC sponsor team as required. The risk engagement framework supports our risk management culture by:
- sharing the risk appetite from the Board with staff and looking at what assurance is in place to address key risks affecting the organisation
- ensuring there is appropriate risk related training for staff
- sharing of feedback and good practice throughout the year
Risk management delegated responsibilities
All staff have a role to play in managing risk throughout the HRA. We make sure staff can perform their role through providing relevant information, guidance and training.
Activity | HRA Board | Chief Executive | Company Secretary |
Overall responsibility for our risk management policy and assigning a responsible senior manager for risk management |
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Ensuring risk management processes are effective and embedded throughout our work |
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Agreeing our risk appetite statement |
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Reviewing significant programme, project, strategic and operational risks |
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Reviewing critical risk management activities including confirming the effectiveness of controls |
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Ensuring appropriate risk management systems are in place |
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Regular review and follow up of processes including confirming the effectiveness of controls |
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Ensuring the appropriate risk governance structure is in place |
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In addressing issues relating to risk, we seek to be as transparent and open as possible. We identify and address those areas where there is a need for improvement in the risk management processes or controls and contingencies.
The internal audit function forms part of the review process and provides assurance on the risk management process and advises the Audit and Risk Committee and Accounting Officer.
Information governance
The HRA has an established information governance structure:
- the Board has designated the Deputy Chief Executive and Director of Resources as Senior Information Risk Officer (SIRO) with responsibility for the system of safeguarding and protecting personally identifiable, confidential, and sensitive data
- the information governance lead is also the Deputy Chief Executive and Director of Resources
- Jonathan Fennelly-Barnwell, Deputy Director of the Approvals Service is the Caldicott Guardian
- Stephen Tebbutt, Company Secretary is the Data Protection Officer
- directors and senior managers are Information Asset Owners (IAOs) as appropriate
The Information Governance Steering Group (IGSG) is a formal sub-committee of the Executive Committee. Its purpose is to co-ordinate, supervise and review the work of others to make sure we maintain a co-ordinated approach to information governance. It meets four times a year and puts in place assurance processes that consider information governance issues to enable continuous improvement.
Data security risks are managed and monitored within the overall risk management framework, the HMG Security Policy Framework, overseen by the information governance lead and IGSG to ensure security threats are followed up and appropriately managed. We are committed to the 10 steps to cyber security and the National Data Guardian’s Data Security Standards.
No data security incidents have been reported to the Information Commissioner's Office (ICO) during the year.
We have introduced additional skills and capabilities to support our cyber resilience, including a Technical Architect and Cyber Security Lead. A new monitoring report is reviewed by IGSG, providing assurance that cyber security controls are sufficient to prevent information security threats.
All information assets and associated systems are identified and included in our Information Asset Register and are assessed annually. These assessments inform the Corporate and Information Risk Registers and help ensure we conform to data protection legislation.
We have also completed the Data Security and Protection Toolkit this year and met all mandatory requirements.
The system of internal control
As Accounting Officer, I have responsibility for reviewing the effectiveness of the system of internal control, which has been in place for the year 1 April 2023 to 31 March 2024 and up to the date of approval of the annual report and accounts, in accordance with HM Treasury guidance.
The Executive Committee, which I lead, reviews and monitors progress with other management groups providing input as required. These include Portfolio Delivery Group, Recruitment Panel and Digital Strategy and Prioritisation Group.
Senior managers who have responsibility for the development and maintenance of the system of internal control provide me with assurance. The assurance framework itself provides me with evidence that the effectiveness of controls that manage the risks to the organisation achieving its principal objectives have been reviewed and this aspect of our activities has been subject to external review.
Our business plan is developed and approved by the Board and sets out our clear purpose and business objectives to deliver our strategy and statutory functions.
Our controls assurance and risk management processes are closely aligned to the twin objectives of maintaining ongoing activities and managing significant transformation activities.
Reports are provided to the Board every three months on achievements and progress against the objectives and plans, and these reports include risks and controls in place to mitigate them.
The effectiveness of the system of internal control is reviewed by our internal auditors who plan and carry out a workplan approved by the Audit and Risk Committee. When weaknesses are identified, these are reported to the Audit and Risk Committee and an action plan agreed with management to address these.
This year, our overall internal audit assurance opinion has improved slightly. This is the result of putting in place improved checking and assurance regimes, better guidance and process development and clarifying roles and responsibilities. This includes introducing purchase orders for all our contracted expenditure, reviewing open purchase orders and monitoring a sample of contracts. We also put in place better data security and protection processes which improved the assurance rating for our data security and protection audit.
Six internal audit reviews were performed, four assurance audits and two advisory audits. All four assurance audits opinions were rated Moderate, compared to one out of four in 2022-23. The assurance audits focused on portfolio management, risk management, strategy – performance and reporting and data security and protection toolkit. The advisory audits focused on organisational design and our Community Committee. Recommendations from these audits are being actively monitored and implemented in line with agreed plans. The audits identified several areas where planning could be enhanced to ensure completion of tasks to improve the control environment.
Our external auditors attend Audit and Risk Committee to keep informed of the design and operation of the systems of internal control. The Head of Internal Audit provides me with an opinion, in accordance with Public Sector Internal Audit Standards, on the overall adequacy and effectiveness of the HRA’s risk management, control and governance processes.
Functional standards
We must apply and adhere to the UK Government functional standards in our processes and services. These standards help create a coherent, effective and mutually understood way of doing business within public bodies. They provide a stable basis for assurance, risk management and capability improvement. In 2023-24 we continued to embed the mandatory standards across our functions including project delivery, finance and counter fraud, bribery and corruption. We will aim to put in place the mandatory standards across all relevant standards in 2024-25.
Compliance with NHS Pension Scheme regulations
As an employer with staff entitled to membership of the NHS Pension Scheme, control measures are in place to ensure all employer obligations contained within the scheme regulations are complied with. This includes ensuring that deductions from salary, employer contributions and payments into the scheme are in accordance with the scheme rules and that member pension scheme records are accurately updated in accordance with the timescales detailed in regulations.
Head of Internal Audit opinion 2023-24
In accordance with the requirements of the UK Public Sector Internal Audit Standards, I am required to provide the Accounting Officer with my annual opinion of the overall adequacy and effectiveness of the organisation’s risk management, control and governance processes.
My opinion is that I can give a Moderate assurance to the Accounting Officer that the HRA has had adequate and effective system of control, governance and risk management in place for the reporting year 2023-24.
Overall governance, risk management and control arrangement are generally effective. The improvements points highlighted in my report are about strengthening controls through improving plans, enhancing reporting and by further developing processes.
Declaration of interests
The HRA maintains a formal register of Board members’ interests as set out in the Code of Accountability for the NHS.
Board members are asked to confirm any declarations of interest at each Board meeting and at any time that changes take place. This includes any interests in relation to specific items on the Board agenda. Board members are also asked to declare any spouse or partner interests. The register, showing current declarations made by the Board, is updated on a regular basis and made available to the public at www.hra.nhs.uk/about-us/governance/ publication-scheme/list-and-registers/
Remuneration to auditors
The accounts have been prepared according to accounts direction of the Secretary of State, with approval of HM Treasury. The accounts have been audited by the Comptroller and Auditor General under the Care Act 2014 at the cost of £56,000 (2022-23 £51,000). The audit certificate can be found on page 60.
Remuneration and staff report
Remuneration Policy
The Chair and Non-Executive Director Board members are remunerated in line with DHSC guidance that applies to all NHS bodies. Details of the senior managers’ remuneration, given in the following tables, are set and reviewed in line with DHSC guidance Pay Framework for Executive and Senior Managers (ESM) in Arm’s Length Bodies.
Senior managers employed under the ESM framework are under stated contracts of employment on terms and conditions as set out by NHS employers. All those contained in the senior managers’ remuneration table below are subject to annual appraisals on their performance.
The HRA does not make performance pay or bonus payments to staff on agenda for change terms and conditions. Staff employed on executive and senior managers (ESM) contracts can be awarded non-consolidated performance related pay award at the discretion of the Pay and Renumeration Committee. Details of these payments can be found in the remuneration report.
Remuneration and pension for Directors (subject to audit):
Chair and Non-Executive Directors
Salaries and Allowances | ||||
Name |
Year ended 31 March |
Salary (bands of £5,000) |
Taxable expenses payments* (to nearest £100) | Total (bands of £5,000) |
£000 | £ | £000 | ||
Professor Sir Terence Stephenson Chair (Note 1) | 2024 | 45 - 50 | - | 45 - 50 |
2023 | 45 - 50 | - | 45 - 50 | |
Richard Cooper | 2024 | 10 - 15 | 300 | 10 - 15 |
2023 | 10 - 15 | - | 10 - 15 | |
Professor Andrew George | 2024 | 5 - 10 | - | 5 - 10 |
2023 | 5 - 10 | - | 5 - 10 | |
Dr Nicole Mather (Note 2) | 2024 | 0 - 5 | - | 0 - 5 |
2023 | 5 - 10 | - | 5 - 10 | |
Neelam Patel | 2024 | 5 - 10 | - | 5 - 10 |
2023 | 5 - 10 | - | 5 - 10 |
* The taxable expenses payments represent the monetary value of commuting expenses claimed and reimbursed during the year.
The Chair and Non-Executive Directors are not eligible for membership of the HRA pension schemes and therefore no Pension Related Benefits column has been included in the table above. No bonus payments were made in 2023-24 or 2022-23 to the Chair or Non-Executive Directors.
Note 1 – Professor Sir Terence Stephenson is not paid directly by the HRA. His salary is paid by University College London and then recharged to the HRA on a cost-recovery basis.
Note 2 – Dr Nicole Mather was employed as a Non-Executive Director until 31 July 23. Her full year equivalent salary for the year ending 31 March 24 was between £5,000 and £10,000.
Directors
Salaries and Allowances | |||||
Name |
Year ended 31 March |
Salary (bands of £5,000) |
Taxable expenses payments* (to nearest £100) | Pension related benefits** (to nearest £1,000) | Total (bands of £5,000) |
£000 | £ | £000 | £000 | ||
Dr Matthew Westmore Chief Executive |
2024 | 140 – 145 | 400 | 40 | 180 – 185 |
2023 | 135 – 140 | - | 26 | 160 – 165 | |
Ian Cook Director of Transformation and Corporate Services (Note 1) | 2024 | - | - | - | - |
2023 | 40 – 45 | - | - | 40 – 45 | |
Dr Janet Messer Director of Approvals Service |
2024 | 100 – 105 | - | - | 100 – 105 |
2023 | 95 – 100 | - | 28 | 125 - 130 | |
Becky Purvis Director of Policy and Partnerships (Note 2) |
2024 | 95 – 100 | - | 23 | 115 – 120 |
2023 | 65 – 70 | - | 16 | 80 – 85 | |
Ian Robinson Chief Digital Transformation Officer (Note 3) |
2024 | - | - | - | - |
2023 | 40 – 45 | - | - | 40 – 45 | |
Juliet Tizzard Director of Policy and Partnerships (Note 2) |
2024 | - | - | - | - |
2023 | 30 – 35 | - | 22 | 50 – 55 | |
Julie Waters Chief Digital Transformation Officer (Note 3) |
2024 | 95 – 100 | - | 41 | 135 – 140 |
2023 | 60 – 65 | - | 15 | 75 – 80 | |
Karen Williams Deputy Chief Executive and Director of Resources | 2024 | 125 – 130 | - | 34 | 160 – 165 |
2023 | 120 – 125 | - | 32 | 150 – 155 |
* The taxable expenses payments represent the monetary value of benefits treated by HMRC as a taxable emolument, provided by the HRA. Dr Matthew Westmore has a lease car provided through a non-subsidised salary sacrifice scheme that is open to all permanent HRA staff including Directors.
** Pension benefits accrued during the year are calculated on the real increase in pension multiplied by 20, less the contributions made by the individual. The real increase excludes increases due to inflation received by the individual. It is a calculation that is intended to convey an estimation of the benefit that being a member of the pension scheme could provide. The pension benefit table provides further information on the pension benefits accruing to the individual.
No bonus payments were made in 2023-24 or 2022-23 to the Directors.
Note 1 – Ian Cook was employed as Director of Transformation and Corporate Services until 6 April 22 when the role was disestablished. The costs for the year ending 31 March 23 comprise a £40,000 payment in lieu of notice.
Note 2 – Juliet Tizzard was employed as Director of Policy and Partnerships to 22 July 22. Her full year equivalent salary to 31 March 23 was between £100,000 and £105,000. Becky Purvis was Interim Director of Policy and Partnerships from 27 June 22, and following a competitive external recruitment process was appointed Director of Policy and Partnerships from 1 November 22. Her full year equivalent salary for both roles for the year to 31 March 23 was between £90,000 and £95,000.
Note 3 – Ian Robinson was employed as Chief Digital Transformation Officer (CDTO) until 22 August 22, his full year equivalent salary for the year to 31 March 23 was between £110,000 and £115,000. Julie Waters was Interim CDTO from 1 August 22, and following a competitive external recruitment process was appointed as CDTO from 11 September 23. Her full year equivalent salary for the year to 31 March 23 was between £90,000 and £95,000 and between £95,000 and £100,000 for the year to 31 March 24.
Directors
Name |
Real increase in pension at pension age (bands of £2,500) |
Real increase in pension lump sum at pension age (bands of £2,500) |
Total accrued pension at pension age at 31 March 2024 (bands of £5,000) |
Accrued related lump sum at pension age at 31 March 2024 (bands of £5,000) |
|
£000 | £000 | £000 | £000 | ||
Dr Matthew Westmore Chief Executive |
2.5 – 5 | 0 – 2.5 | 5 – 10 | 0 – 5 | |
Dr Janet Messer Director of Approvals Service (Note 1) |
- | 25 – 27.5 | 25 – 30 | 70 – 75 | |
Becky Purvis Director of Policy and Partnerships |
0 – 2.5 | - | 0 – 5 | - | |
Julie Waters Chief Digital Transformation Officer |
2.5 – 5 | 0 – 2.5 | 15 – 20 | 0 – 5 | |
Karen Williams Deputy Chief Executive and Director of Resources |
2.5 – 5 | - | 15 – 20 | - |
Name |
Cash equivalent transfer value at 31 March 2023 |
Real increase in cash equivalent transfer value |
Cash equivalent transfer value at 31 March 2024 |
Employer’s contribution to stakeholder pension |
|
£000 | £000 | £000 | £000 | ||
Dr Matthew Westmore Chief Executive |
75 | 33 | 134 | 0 | |
Dr Janet Messer Director of Approvals Service (Note 1) |
533 | 66 | 667 | 0 | |
Becky Purvis Director of Policy and Partnerships |
24 | 16 | 55 | 0 | |
Julie Waters Chief Digital Transformation Officer |
167 | 46 | 243 | 0 | |
Karen Williams Deputy Chief Executive and Director of Resources |
185 | 53 | 273 | 0 |
The Chair and Non-Executive Directors are not eligible for membership of the HRA’s pension schemes and therefore no figures are included for them in the table above.
Any members affected by the Public Service Pensions Remedy were reported in the 2015 scheme for the period between 1 April 2015 and 31 March 2022 in 2022-23 but are reported in the legacy scheme for the same period in 2023-24.
Note 1 – Dr Janet Messer is affected by the Public Service Pensions Remedy and her membership between 1 April 2015 and 31 March 2022 was moved back into the 1995/2008 scheme on 1 October 2023.
Negative values are not disclosed in this table but are substituted with a zero.
Cash Equivalent Transfer Values
A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capital value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s (or other allowable beneficiary’s) pension payable from the scheme. CETVs are calculated in accordance with SI 2008 No.1050 Occupational Pension Schemes (Transfer Values) Regulations 2008.
Real increase in CETV
This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation or contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement).
Pay Ratio Information (subject to audit)
Reporting bodies are required to disclose the relationship between the remuneration of the highest paid director or member in their organisation against the 25th percentile, median and the 75th percentile of remuneration of the organisation’s workforce. Total remuneration is further broken down to show the relationship between the highest paid director director’s salary component of their total remuneration against the 25th percentile, median and the 75th percentile of salary components of the organisation’s workforce.
In 2023-24, the banded annualised remuneration of the highest paid director was £140,000 to £145,000 (2022-23, £135,000 to £140,000). The relationship to the remuneration of our workforce is disclosed in the table below.
Year | |||
2023-24 | 2022-23 | ||
Highest paid director mid-point |
£142,500 | £137,500 | |
25th Percentile | Total remuneration | £34,581 | £31,114 |
Total remuneration ratio |
4.1:1 | 4.4:1 | |
Salary | £34,581 | £29,180 | |
Salary ratio | 4.1:1 | 4.7:1 | |
Median (50th Percentile) | Total remuneration | £42,618 | £37,633 |
Total remuneration ratio |
3.3:1 | 3.7:1 | |
Salary | £42,618 | £35,572 | |
Salary ratio | 3.3:1 | 3.9:1 | |
75th Percentile | Total remuneration | £50,056 | £49,975 |
Total remuneration ratio |
2.8:1 | 2.8:1 | |
Salary | £50,056 | £47,672 | |
Salary ratio | 2.8:1 | 2.9:1 |
All percentile values are showing an increase from last year. The median total remuneration has increased 13.2% to £42,618 and the median salary has increased by 19.8% to £42,618. The lower % increase in total remuneration is mainly due to the 2022-23 figure including a non-consolidated agenda for change pay award worth 2% which was classified as a bonus rather than salary due to its one-off nature.
The median salary value is an agenda for change band 6 salary in both years, but in 2023-24 is on a higher pay point within the band 6 range giving an increase in median salary of 14.1%. Consolidated pay awards of 5% for both staff employed on executive and senior managers (ESM) contracts and staff employed on agenda for change contracts, coupled with changes in the composition and distribution of the pay bandings of the workforce and incremental pay progression has also contributed to the increases.
The majority of percentile ratios are showing a decrease from last year. The median total remuneration ratio has decreased by 10.8% to 3.3:1 and the median salary ratio has decreased by 15.4% to 3.3:1. Whilst all staff including the highest paid director have received a pay award of 5% during 2023-24, the increase in median salary and total remuneration values means that the highest paid directors mid-point total remuneration expressed as a ratio of the median salary and total remuneration is showing a lower ratio for 2023-24.
The median pay ratio is considered consistent with the pay, reward, and progression policies of the organisation for the employees taken as a whole.
Remuneration range
Total remuneration includes salary, non-consolidated performance-related pay and benefits-in-kind, but not severance payments. It does not include employer pension contributions and the cash equivalent transfer value of pensions. For all employees, total banded remuneration ranged from £20,000 - £25,000 to £140,000 - £145,000 (2022-23: £25,000 - £30,000 to £135,000 - £140,000). No employees received remuneration more than the highest paid Director.
Percentage change from previous financial year in respect of highest paid director
2023-24 | 2022-23 | |
Salary and allowances | 3.6% | -47.6% |
Performance pay and bonuses | 0.0% | 0.0% |
Salary and allowances
The increase in the highest paid director’s remuneration for 2023-24 is due to the 5% consolidated pay award to staff employed on executive and senior managers (ESM) contracts. This award was in line with the pay award made to staff employed on agenda for change contracts. The increase shown is lower than the full 5% pay award due to the calculation using the mid-point of the salary banding rather than the actual salary.
The decrease in the highest paid director’s remuneration for 2022-23 is due to interim digital leadership arrangements put in place at pace in 2021-22 while we recruited to the permanent role. In both 2022-23 and 2023-24 the highest paid director was the Chief Executive with a significantly lower mid-point salary.
Performance pay and bonuses
Staff employed on executive and senior managers (ESM) contracts can be awarded non-consolidated performance related pay award at the discretion of the Pay and Remuneration Committee. Details of these payments can be found in the remuneration report. No non-consolidated performance related pay awards were made in 2023-24 or 2022-23.
Average percentage change from previous financial year in respect of all employees (excluding the highest paid Director)
2023-24 | 2022-23 | |
Salary and allowances | 7.5% | 2.9% |
Performance pay and bonuses | -100.0% | 10,463.7% |
Salary and allowances
The increase in all employees (excluding highest paid Director) salary and allowances for 2023-24 is mainly due to the 5% consolidated pay award for staff employed on executive and senior managers (ESM) contracts and staff employed on agenda for change contracts. Changes in the composition and distribution of the pay banding of the workforce during 2023-24, coupled with incremental pay progression, has led to a greater average % increase in year than the 5% pay awards.
Performance pay and bonuses
The agenda for change non-consolidated pay award for 2022-23 was included within the performance pay and bonuses category above due to its one-off nature. The large % increase in this category for 2022-23 and the corresponding large % decrease for 2023-24 is due to the award only being made for 2022-23.
Staff report
Early retirements and redundancies (subject to audit)
There were 3 exit packages agreed during the year ending 31 March 2024, costing £78,616 (2022-23; 14, £339,029).
Redundancy and other departure costs have been paid in accordance with agenda for change terms and conditions. The table below shows the total cost of exit packages agreed and accounted for in 2023-24 and 2022-23. Exit packages totalling £18,616 were paid in the year, relating to departures agreed in 2023-24 (2022-23; £215,429). There were no other departure costs agreed in 2023-24 (2022-23 £48,673).
The amounts are due to the individuals and do not include the employers’ National Insurance contribution on the payments. These payments are included within the social security costs in the staff note. Additional costs of agreed early retirement are met by the HRA and not by the NHS Pension Scheme.
Ill health retirements costs are met by the NHS Pension Scheme and are not included in this table. There are no redundancy payments that are special payments.
Year ended 31 March 2024 | ||||||
Exit package cost band | Number of compulsory redundancies (whole numbers) | Cost of compulsory redundancies (£) | Number of other departures (whole numbers) | Cost of other departures (£) | Total number of exit packages (whole numbers) | Total cost of exit packages (£) |
Less than £10,000 | 1 | 5,878 | - | - | 1 | 5,878 |
£10,001 - £25,000 | 1 | 12,738 | - | - | 1 | 12,738 |
£25,001 - £50,000 | - | - | - | - | - | - |
£50,001 - £100,000 | 1 | 60,000 | - | - | 1 | 60,000 |
Total | 3 | 78,616 | - | - | 3 | 78,616 |
Year ended 31 March 2023 | ||||||
Exit package cost band | Number of compulsory redundancies (whole numbers) | Cost of compulsory redundancies (£) | Number of other departures (whole numbers) | Cost of other departures (£) | Total number of exit packages (whole numbers) | Total cost of exit packages (£) |
Less than £10,000 | 1 | 7,666 | 4 | 8,608 | 5 | 16,274 |
£10,001 - £25,000 | 3 | 47,746 | - | - | 3 | 47,746 |
£25,001 - £50,000 | 3 | 94,643 | 1 | 40,065 | 4 | 134,708 |
£50,001 - £100,000 | 2 | 140,301 | - | - | 2 | 140,301 |
Total | 9 | 290,356 | 5 | 48,673 | 14 | 339,029 |
Analysis of staff costs (subject to audit)
Year ended 31 March 2024 | Year ended 31 March 2023 | |||
Permanently employed £000 |
Other £000 |
Total £000 |
Total £000 |
|
Salaries and wages | 10,314 | 80 | 10,394 | 11,415 |
Social security costs | 1,103 | - | 1,103 | 1,242 |
Pension costs | 2,006 | - | 2,006 | 2,037 |
Redundancies and notice not worked | 79 | - | 79 | 339 |
Total staff costs | 13,502 | 80 | 13,582 | 15,033 |
The costs and average numbers of staff include the costs of staff employed by other organisations that are recharged to the HRA. These are included within the ‘other’ column. These figures include social security costs and employer contributions to the NHS Pensions Authority.
The average number of FTE persons employed during the year (subject to audit)
Year ended 31 March 2024 | Year ended 31 March 2023 | |||
Permanently employed (number) | Other (number) | Total (number) | Total (number) | |
Total | 241 | 1 | 242 | 266 |
Staff turnover was 8.2% during 2023-24 (2022-23: 17.5%). (Unaudited)
Retirements due to ill health
This note discloses the number and additional pension costs for individuals who retired early on ill-health grounds during the year. There were no such retirements in the year to 31 March 2024 (£nil 2022-23). This information has been supplied by NHS Pensions Authority.
Pension costs
Past and present employees are covered by the provisions of the NHS Pension Schemes.
Details of the benefits payable and rules of the schemes can be found on the NHS pensions website at www.nhsbsa.nhs.uk/pensions.
Both the 1995/2008 and 2015 schemes are accounted for, and the scheme liability valued, as a single combined scheme. Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State for Health and Social Care in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body of participating in each scheme is taken as equal to the contributions payable to that scheme for the accounting period.
In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal valuations shall be four years, with approximate assessments in intervening years”.
An outline of these follows:
a) Accounting valuation
A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2024, is based on valuation data as at 31 March 2023, updated to 31 March 2024 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.
The latest assessment of the liabilities of the scheme is contained in the Statement by the Actuary, which forms part of the annual NHS Pension Scheme Annual Report and Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.
b) Full actuarial (funding) valuation
The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.
The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2020. The results of this valuation set the employer contribution rate payable from 1 April 2024 to 23.7% of pensionable pay. The core cost cap cost of the scheme was calculated to be outside of the 3% cost cap corridor as at 31 March 2020. However, when the wider economic situation was taken into account through the economic cost cap cost of the scheme, the cost cap corridor was not similarly breached. As a result, there was no impact on the member benefit structure or contribution rates.
Off payroll engagements
Following the review of tax arrangements of public sector appointees published by the Chief Secretary to the Treasury on 23 May 2012, we must publish the following tables of information on our highly paid or senior off-payroll engagements.
Table 1: length of all highly paid off-payroll engagements
For all off-payroll engagements as of 31 March 2024, earning £245 per day or greater:
Number | |
Number of existing engagements as of 31 March 2024 | 0 |
The number that have existed for less than 1 year at the time of reporting |
0 |
The number that have existed for between 1 and 2 years at the time of reporting |
0 |
The number that have existed for between 2 and 3 years at the time of reporting | 0 |
The number that have existed for between 3 and 4 years at the time of reporting |
0 |
The number that have existed for 4 or more years at the time of reporting |
0 |
We can confirm that all existing off-payroll engagements have at some point been subject to a risk-based assessment as to whether assurance is required that the individual is paying the right amount of tax and where necessary, that assurance has been sought.
Table 2: off-payroll workers engaged at any point during the financial year
For all off-payroll engagements between 1 April 2023 and 31 March 2024, earning £245 per day or greater:
Number | |
Number of temporary off-payroll workers engaged between 1 April 2023 and 31 March 2024 |
1 |
Of which: | |
Number not subject to off-payroll legislation (see note 1) | 1 |
Number subject to off-payroll legislation and determined as in-scope of IR35 (see note 1) |
0 |
Number subject to off-payroll legislation and determined as out of scope of IR35 (see note 1) |
0 |
Number of engagements reassessed for compliance or assurance purposes during the year |
0 |
Of which, number of engagements that saw a change to IR35 status following review |
0 |
Note 1 – A worker that provides their services through their own limited company or another type of intermediary to the client will be subject to off-payroll legislation and the HRA must undertake an assessment to determine whether that worker is in-scope of intermediaries legislation (IR35) or out-of-scope for tax purposes.
Table 3: off-payroll board member/senior official engagements
For any off-payroll engagements of board members and/or senior officials with significant financial responsibility between 1 April 2023 and 31 March 2024:
Number | |
Number of off-payroll engagements of Board members and / or senior officers with significant financial responsibility during the financial year |
0 |
Total number of individuals on payroll and off-payroll that have been deemed “board members, and/or,senior officials with significant financial responsibility” during the financial year. This figure must include both on payroll and off-payroll engagements. |
9 |
Consultancy expenditure
For the year ended 31 March 2024 the HRA spent £11,461 on consultancy (2022-23: £nil).
Sickness absence
Statistics produced by NHS Digital – Sickness Absence Publication – based on data from the Electronic Staff Record (ESR) Data Warehouse.
Quarterly Sickness Absence Publication Average FTE 2023 |
Adjusted FTE days lost to sickness absence |
Average sickness days per FTE |
246 | 1,803 | 7.3 |
Year covered: January - December 2023
- Employee Self Service (ESR) is the system we use for time and attendance management. It does not hold details of the normal number of days worked by each employee. Data on days lost and days available produced in reports are based on a 365-day year.
- the number of Full-Time Equivalent (FTE) days lost to sickness absence has been estimated by multiplying the estimated FTE days available by the average sickness absence rate.
- the average number of sick days per FTE has been estimated by dividing the estimated number of FTE-days sick by the average FTE.
- sickness absence rate is calculated by dividing the sum total sickness absence days (including non-working days) by the sum total days available per month for each member of staff)
Equality, diversity and inclusion (EDI)
We know the HRA is working at its best when our people feel they belong and are valued for who they are, and that they see this borne out in their daily experience of the organisation.
In 2023-24, we:
- published a new set of strategic EDI priorities and Equality Objectives based on a rich evidence base, benchmarking, staff surveys and government priorities
- celebrated a continuing rise in disability disclosure, from 9% in 2023 to 11% in 2024
- increased the percentage of ethnic minority staff in management and leadership roles to better reflect the whole workforce, narrowing the gap from 4 percentage points in 2023 (13% and 17% respectively) to 2 percentage points in 2024 (14.5% and 16.5%)
- developed a fair recruitment learning module, which is mandatory for recruiting managers and helps them understand and apply our policy and guidance
- completed a learning programme on reproductive health, including discussion groups to help share future policy and support for staff
- updated our Health and Accessibility Passport and created a checklist for managers receiving a disability disclosure to make sure staff get what they need
- assessed our organisation against the NHS Confederation LGBTQ+ Inclusion Framework, identified priorities for development and started to address these
- reviewed and updated our Menopause at Work policy to align with the new British Standard
Equality information for staff
31 March 2024 (number) | 31 March 2024 (%) | 31 March 2023 (Number) | 31 March 2023 (%) | |
Gender | ||||
Female | 187 | 72% | 188 | 71% |
Male | 73 | 28% | 75 | 29% |
Grand total | 260 | 100% | 263 | 100% |
Ethnic origin (grouped) | ||||
Asian or British Asian | 23 | 9% | 24 | 9% |
Black or Black British / Mixed / Other ethnic group | 20 | 8% | 20 | 8% |
Not stated / undefined | 10 | 4% | 10 | 4% |
White | 207 | 79% | 209 | 79% |
Grand total | 260 | 100% | 263 | 100% |
Disabled | ||||
No | 219 | 84% | 225 | 86% |
Not declared / undefined | 13 | 5% | 14 | 5% |
Yes | 28 | 11% | 24 | 9% |
Grand total | 260 | 100% | 263 | 100% |
Age | ||||
<20-25 | 4 | 2% | 12 | 4% |
26-35 | 81 | 31% | 79 | 30% |
36-45 | 91 | 35% | 90 | 34% |
46-55 | 58 | 22% | 54 | 21% |
56-75 | 26 | 10% | 28 | 11% |
Grand total | 260 | 100% | 263 | 100% |
31 March 2024 | 31 March 2023 | |||||||
Male | % | Female | % | Male | % | Female | % | |
Directors | 1 | 20% | 4 | 80% | 1 | 20% | 4 | 80% |
Other senior managers | 22 | 39% | 35 | 61% | 24 | 43% | 32 | 57% |
Employees | 50 | 25% | 148 | 75% | 50 | 25% | 152 | 75% |
Total | 73 | 28% | 187 | 72% | 75 | 29% | 188 | 71% |
We publish gender pay information showing the difference in average earnings between women and men. The results for 2024 show that the average hourly rate is 6.0% higher for men, with the median being 14.6% higher (2023 average hourly rate 6% higher, and median 9.7% higher). This does not mean that men get paid more than women for doing the same job, the NHS pay grade structure (also known as Agenda for Change) and employment practices we use mean this is not possible.
Women are however overrepresented at all levels of the organisation, but less so in the most highly paid roles. This results in a more favourable average pay gap. There are also far fewer men in roles at the lower end of the pay grade structure which results in a lower median average pay for women. We have developed a set of recommendations to address these differences and to close these gaps.
We publish diversity information on our website at: Equality, Diversity and Inclusion Strategy - Health Research Authority (hra.nhs.uk)
Our gender pay gap data is also published on the gov.uk website: Gender pay gap service - GOV.UK
Freedom to speak up (raising concerns)
Our freedom to speak up policy is derived from the Public Interest Disclosure Act 1998 (PIDA) which exists to protect members of staff who make disclosures in good faith about wrongdoing or activity which is against the public interest. The policy is made available to all staff and is published on our SharePoint. There were no freedom to speak up claims during 2023-24.
Health, safety and welfare
We embrace health, safety and welfare as an integral part of our culture. We are committed to the fundamental right of all staff to work in a safe and healthy environment, and to an integrated approach to identifying and mitigating associated risks.
Managers and staff are supported by comprehensive health, safety and welfare arrangements including an Estates Strategy Group which incorporates our Health, Safety and Welfare Committee (HSWC), comprehensive policies and procedures and access to expert advice. We encourage our employees to report accidents or instances of work-related ill health so we can identify trends and to inform on our health and safety performance.
We are pleased to report that we have had no reportable incidents, the same as last year. The HSWC is satisfied that if an incident were to occur it would be known immediately and reported.
No reports were made under Reporting Injuries, Diseases and Dangerous Occurrences Regulations 2013.
Trade union recognition
We have a well-established and embedded staff forum (Staff Voices) and a formal partnership with Unison and Managers in Partnership. The Joint Negotiating Committee has formally met 4 times. During the year 4 members of staff (4 FTE) were union officials at the HRA.
Percentage time | Number of employees |
0% | 0 |
1-50% | 4 |
51-99% | 0 |
100% | 0 |
Percentage of staff costs spend on union facility activities | |
Total cost of union facility activities | £1,009 |
Total staff costs | £13,627,000 |
Percentage of total staff costs spent on union facility activities | 0.01% |
Paid trade union activities | |
Time spent on paid trade union activities as a percentage of total paid facility time hours |
100% |
Pension Liabilities
Past and present employees of the HRA are covered by the provisions of the NHS Pensions Scheme. Page 51 of the annual report presents how pension liabilities have been treated.
Parliamentary accountability and audit report
This section provides other information disclosed in the public interest and is subject to audit.
Remote Contingent Liabilities
There are no known material remote contingent liabilities.
Regularity of Expenditure: Losses and Special Payments
For the year-ending 31 March 2024 the Health Research Authority incurred 16 losses totalling £151,280 (2022-23: 5 losses totalling £981). This included a loss of £140,052 relating digital code development costs for the IRAS website incurred in 2022-23. These costs had been included as an asset under construction on our Statement of Financial Position. This work was paused at part of our Research Systems Programme reset and following this, it was decided that this code could not be used with the new approach.
No special payments were made during the year.
![Dr Matthew Westmore signature](https://s3.eu-west-2.amazonaws.com/www.hra.nhs.uk/media/images/Matt_sig.width-800.width-500.jpg)
Dr Matthew Westmore
Chief Executive
Health Research Authority
15 July 2024