Agenda for Change Pay Framework UK

Agenda for Change (AfC) is the national pay, grading and conditions framework for the vast majority of NHS staff. It sets the structure through which roles are evaluated, banded and remunerated, and provides a unified contractual foundation for working hours, overtime, leave entitlements and wider terms of employment across the NHS. AfC applies only where its terms are expressly or impliedly incorporated into the employment contract, including in NHS trusts and in some independent or third-sector providers delivering NHS-funded services; it does not apply automatically simply because services are commissioned or funded by the NHS. For HR professionals, understanding AfC is fundamental to ensuring lawful pay practices, maintaining contractual compliance and managing staff within an environment where pay structures are nationally standardised but locally applied.

What this article is about: This article provides a detailed and practical guide to Agenda for Change for HR professionals and employers who manage NHS staff or adopt NHS-equivalent terms within their organisations. It explains the legal basis of AfC, how pay bands and progression operate, what allowances and entitlements apply, and the HR responsibilities involved when implementing, interpreting or aligning workforce arrangements with AfC. It also outlines key reforms, pay review processes and the implications of working within a nationally negotiated contractual framework.

AfC remains central to workforce governance in the NHS. HR teams are expected to apply the framework consistently, correctly and in line with employment legislation, particularly where banding decisions, overtime entitlements and contractual terms affect pay equity, compliance and staff relations. This introduction sets the context for the following sections, which look at AfC in depth and clarify the rules HR teams must follow to ensure staff are paid lawfully and appropriately, and that contractual AfC terms are interpreted and applied in line with ordinary contractual principles.

Section A: What Agenda for Change Is

Agenda for Change (AfC) provides a uniform national framework for pay, grading and core contractual terms for most NHS staff. For HR professionals, it operates as the contractual backbone for staff whose employment is linked to NHS Terms and Conditions of Service (NHS TCS). Understanding its origins, legal character and scope of application is key to ensuring that staff are managed consistently and in accordance with both contractual requirements and wider employment law. Where AfC terms are incorporated into contracts, employment tribunals will interpret those provisions using ordinary contractual principles, rather than treating AfC as a free-standing policy or statutory code.

1. Definition and purpose

AfC was introduced in 2004 to replace a patchwork of local pay systems and legacy arrangements within the NHS. Its purpose was to create a unified structure that linked pay with job evaluation, set national pay bands and placed transparency, comparability and equal pay at the centre of NHS workforce remuneration. The framework is underpinned by the NHS Job Evaluation Scheme, which ensures that roles are banded according to the demands of the job rather than job titles or local conventions.

For HR teams, AfC provides the mechanism to benchmark roles, structure pay progression and ensure a consistent approach to workforce planning across the organisation. It also forms the basis on which contractual allowances, working time provisions and enhancements are determined. Because AfC is tied to a robust job evaluation methodology, it also plays a central role in supporting equal pay compliance and defending grading decisions where challenged.

2. Legal status

AfC does not have statutory force. Instead, it operates contractually through incorporation into individual employment contracts, most commonly by reference to the NHS Terms and Conditions of Service Handbook. Once incorporated, AfC becomes contractually binding and enforceable in the same way as any other contractual term, and tribunals will apply normal principles of contractual interpretation when deciding disputes about its meaning or effect.

Its application must align with UK employment law, including the Employment Rights Act 1996, the Equality Act 2010 and the Working Time Regulations 1998. AfC does not override statutory rights; rather, it sets enhanced terms in many areas, such as annual leave, sickness absence entitlement and overtime rates. HR professionals must ensure that local policies and pay practices mirror the incorporated AfC terms and comply with statutory obligations around equal pay, discrimination prevention and working time limits. Where AfC provisions are not followed, employers may face claims for unlawful deduction from wages and breach of contract, particularly in relation to underpayment of enhancements, overtime or progression.

3. Who AfC applies to

AfC covers the majority of NHS staff, excluding doctors, dentists and most senior managers. It applies to clinical and non-clinical roles across Bands 1 to 9, including nurses, healthcare support workers, allied health professionals, administrative staff and technical teams. Organisations delivering NHS services under contractual arrangements may also choose to adopt AfC terms to align workforce conditions with the NHS, although this depends on contractual negotiations and organisational strategy rather than any automatic legal requirement.

AfC does not automatically transfer to private or third-sector providers simply because they hold NHS contracts or provide NHS-funded services. The framework will apply to transferring employees under TUPE only where AfC terms were already incorporated into their contracts before transfer; those terms will then move with the employee as part of their contractual rights. TUPE does not require the receiving employer to adopt AfC wholesale for new recruits. Commissioners and NHS contracting bodies cannot, as a matter of employment law, unilaterally impose AfC on an independent provider’s workforce; instead, AfC adoption arises through procurement, commercial negotiation and subsequent contractual incorporation into employee terms.

HR teams outside the NHS who adopt AfC must understand that its terms become contractual once incorporated, even if they are not legally mandated. This is particularly relevant for private or third-sector providers who employ staff on “NHS-equivalent” terms to meet commissioning requirements or maintain competitive recruitment practices. TUPE transfers involving NHS staff frequently require adherence to AfC where contractual terms transfer with the employee, and any changes to those transferred AfC terms must follow lawful variation processes.

Section A Summary
Agenda for Change is a national contractual framework that standardises pay, grading and core conditions for most NHS staff. It sets out a structured and legally enforceable approach to pay and employment terms once incorporated into contracts, and tribunals interpret AfC provisions using standard contractual principles. HR professionals must understand both its coverage and its contractual status to ensure compliance, particularly where staff work in organisations delivering NHS services or are transferred under TUPE with AfC terms intact, and to avoid unlawful deduction from wages or breach of contract claims where AfC is not correctly applied.

Section B: Pay Bands, Progression and Matching

The Agenda for Change (AfC) pay system is built around a structured pay band framework designed to ensure consistency, fairness and transparency in remuneration. HR professionals are responsible for applying the system correctly, ensuring jobs are properly evaluated, pay progression is managed lawfully and disputes are handled in line with NHS protocols. This section sets out how the AfC band structure works, how roles are matched and evaluated, and what employers must do to manage pay progression in accordance with contractual requirements.

1. Pay bands explained

The AfC framework consists of nine pay bands, with Band 1 representing the lowest-paid roles and Band 9 covering the most senior non-medical positions. Each band contains a series of pay points or “pay steps” that set the salary structure from entry-level to the top of the band. Individual staff salaries are determined by the banding of their role, which in turn is based on a formal job evaluation.

The NHS Job Evaluation Scheme underpins the entire system. It scores job demands across factors such as knowledge, responsibility, physical and emotional effort and working conditions. Roles are then matched to a national job profile or evaluated locally where no suitable profile exists. This ensures national consistency and supports equal pay compliance by linking pay to role demands rather than subjective assessments or historical classifications.

Job evaluation panels must be trained and constituted in accordance with the NHS Job Evaluation Handbook, and the evaluation process must be documented to withstand scrutiny in equal pay or contractual disputes. Employers cannot lawfully adjust banding outcomes for financial or budgetary reasons alone, as doing so risks breaching AfC principles and equality obligations.

2. Pay step progression

Pay progression within each band is governed by the AfC pay step framework. Staff move through pay steps based on service and performance requirements set out in the NHS Terms and Conditions, including Annex 23 on pay progression. The introduction of the 2018 pay reform simplified progression and linked advancement more clearly to appraisal outcomes and mandatory training compliance.

HR teams must ensure that pay progression decisions are evidence-based, consistent and clearly documented. Progression can be delayed where appraisal standards are not met, mandatory training is incomplete or performance concerns have been formally raised. However, such delays must follow the contractual rules, including ensuring that staff were given reasonable access to training and support. Failure to meet these requirements may render a decision to withhold progression unlawful or in breach of contract. Employers should ensure clear communication and maintain accurate records to support decisions.

3. Recruitment, re-banding and job evaluation disputes

Accurately banding a role at recruitment is critical because it sets the foundation for pay and progression. HR professionals must ensure that recruitment documentation, job descriptions and person specifications are aligned with the job evaluation outcomes and national job profiles.

Re-banding requests arise where staff believe their job has evolved or no longer reflects its current responsibilities. Employers must consider such requests objectively, reviewing job descriptions, evaluating additional duties and assessing whether the role has substantively changed. Additional tasks that do not represent a substantive change in the nature, scope or responsibility level of the role will not justify a re-band. Formal job evaluation panels should be convened in accordance with the Job Evaluation Handbook where necessary.

Disputes about banding or job evaluation outcomes must be processed through recognised AfC dispute procedures. HR teams must ensure transparency, maintain comprehensive records and apply the national job evaluation principles consistently to avoid equal pay risks and grievances. Employers must ensure that panels are properly trained and follow the approved methodology to ensure defensibility in the event of challenge.

Section B Summary
The AfC pay structure relies on a clear system of national banding, job evaluation and structured progression. HR teams must apply job evaluation principles consistently, ensure progression decisions comply with Annex 23 requirements and handle re-banding requests and disputes in line with formal AfC processes. Proper governance protects equal pay compliance, avoids unlawful deduction from wages or breach of contract claims and ensures clarity for staff throughout their employment.

Section C: Hours, Overtime, Allowances and Conditions

Agenda for Change (AfC) sets out standardised contractual terms governing working time, overtime, leave entitlements and a range of allowances. HR professionals must understand how these terms interact with statutory requirements and organisational policies. Proper application ensures equal treatment, lawful pay practices and consistent workforce management. This section explains the key AfC provisions that determine working hours, additional hours payments and wider employment conditions.

1. Standard hours and working time

Under AfC, the standard full-time working week is 37.5 hours, usually organised over five days. Part-time staff receive pro-rated hours and entitlements based on this benchmark. The contractual 37.5-hour week operates alongside the Working Time Regulations 1998 (WTR), which set statutory limits on weekly hours, rest breaks and annual leave.

HR teams must ensure rotas comply with both AfC and the WTR. This includes enforcing daily and weekly rest breaks, ensuring average weekly working time does not exceed 48 hours (unless an opt-out is in place) and managing night work limits. The 48-hour opt-out cannot lawfully be imposed as a condition of employment. When staff undertake on-call duties, HR must determine whether on-call time counts as “working time” under WTR case law, including decisions such as Dixons and Federación de Servicios Púbicos, where time spent on the employer’s premises or under significant constraints may constitute working time.

Where AfC provides more generous entitlements than the statutory minimum, the contractual terms apply. Employers must ensure these enhanced rights are not diminished by local policy or rostering practices.

2. Overtime and additional hours

Overtime applies to staff who work above the standard 37.5-hour week. AfC sets enhanced overtime rates under Section 3 of the NHS Terms and Conditions Handbook. For many staff, overtime is paid at time-and-a-half for hours worked on weekdays and Saturdays, and double time for Sundays and bank holidays. Part-time staff receive “additional hours” payments at plain time until they reach 37.5 hours, after which overtime enhancements apply.

AfC also includes payments for unsocial hours, on-call and standby duties. Unsocial hours enhancements compensate staff required to work evenings, nights, weekends and public holidays. HR professionals must ensure accurate rota recording, correct categorisation of hours and proper payroll implementation to prevent underpayment or overpayment.

Employers should be aware that overtime is not automatically a contractual entitlement. Whether staff can be required to work overtime depends on their contract and local policies. Any requirement must remain compliant with WTR limits and equality obligations.

3. Leave entitlements and contractual benefits

AfC provides enhanced annual leave entitlements that increase with length of service, starting above the statutory minimum. Leave is calculated on a pro-rated basis for part-time staff. AfC also includes contractual sick pay provisions set out in Section 14 of the TCS Handbook, maternity and parental leave under Section 15, and injury allowance in certain circumstances. These contractual provisions operate alongside statutory schemes, and statutory eligibility rules continue to apply where relevant.

Other AfC-linked benefits include redundancy terms, notice periods and allowances linked to specific duties or working conditions. HR professionals must apply these entitlements consistently and ensure policies reflect the contractual AfC terms rather than relying solely on statutory minimums. Recordkeeping is essential to ensure accurate calculation of service-linked benefits, particularly where enhanced rights depend on continuous NHS service.

Section C Summary
AfC provides a detailed framework for working hours, overtime, unsocial hours payments and enhanced contractual benefits. HR teams must align workplace policies with these terms and ensure proper implementation through rota management, compliance with the Working Time Regulations and accurate payroll processing. Correct application reduces risk, supports equal treatment, ensures lawful pay practices and protects against claims for unlawful deduction from wages or breach of contract.

Section D: Modernisation, Reforms and Employer Responsibilities

Agenda for Change (AfC) continues to evolve as workforce needs, government policy and NHS operational pressures change. HR professionals must understand the history of reform, current pay review processes and the employer obligations that arise when implementing AfC terms. This section explains the main reforms to the framework, how pay decisions are made nationally and the responsibilities organisations face when applying AfC in practice, including TUPE, equality compliance and managing contractual change.

1. The 2018 pay reform

The most significant recent update to AfC occurred in 2018, when the government, NHS Employers and trade unions agreed a multi-year pay deal. The reform simplified pay structures by reducing the number of pay points within many bands, aligning pay progression more closely with competence and performance and increasing entry pay for several bands. It also introduced clearer links between appraisal outcomes, mandatory training completion and progression eligibility.

For HR teams, the reform required extensive local implementation work: updating payroll structures, revising appraisal processes and ensuring staff understood the new progression rules. Although the reform period has formally concluded, its structural changes remain embedded in AfC and continue to shape how pay progression is managed today. These changes must still be applied in accordance with the NHS Terms and Conditions Handbook and related guidance.

2. Current issues and pending reforms

AfC is subject to regular national review. The NHS Pay Review Body (NHSPRB) provides independent recommendations on pay awards each year based on evidence from employers, unions and government. NHSPRB recommendations are advisory; they are not legally binding. The government sets the final award, and HR teams must implement any changes once announced, normally with effect from April each year.

Ongoing issues include recruitment and retention challenges, pay compression across certain bands and debates about the future affordability and competitiveness of NHS pay. Policy developments, such as workforce expansion plans or public-sector pay guidance, can influence future reforms. HR directors must be prepared to update local policies and payroll systems quickly when national decisions are implemented.

3. HR obligations for employers using AfC

Employers adopting AfC—whether NHS trusts, arm’s-length bodies or contracted providers—must implement the framework accurately and lawfully. Key responsibilities include:

• Applying AfC terms contractually: Once incorporated into employment contracts, AfC forms part of an employee’s contractual terms. Employers must follow the handbook exactly unless amendments are lawfully negotiated.
• Ensuring equal pay compliance: AfC supports equal pay by standardising roles and banding. Deviations from job evaluation principles or failure to apply AfC enhancements correctly may result in equal pay or discrimination claims.
• Maintaining accurate records: Job evaluation outcomes, appraisal documentation, training compliance records and payroll data must be kept to support progression and banding decisions.
• Managing TUPE transfers: Under TUPE, existing contractual AfC terms transfer with the employee. However, receiving employers are not required to adopt AfC for new hires. Any attempt to change transferred AfC terms must follow lawful variation rules.
• Negotiating changes with unions: Where the organisation recognises trade unions, any local changes to AfC-derived terms must be negotiated collectively. Employers cannot impose changes unilaterally without risking breach of contract.
• Protecting job evaluation integrity: Job evaluation outcomes cannot be changed for financial or budgetary reasons alone. Changes must reflect genuine alterations in job content and be made through trained panels.

Failure to follow AfC correctly can lead to unlawful deduction from wages claims, equal pay disputes or allegations of breach of contract. The framework provides clarity and consistency, but only when applied rigorously and in accordance with the NHS Terms and Conditions Handbook and other contractual documents.

Section D Summary
AfC continues to evolve through national pay reforms, annual review processes and policy changes. HR professionals must track these developments, apply contractual terms accurately and manage equal pay, TUPE and job evaluation obligations with care. Effective governance and adherence to the NHS Terms and Conditions Handbook reduce legal risk and ensure staff receive the contractual rights and protections set out under AfC.

FAQs

What roles are covered by Agenda for Change?
Most NHS staff fall within AfC, including nurses, healthcare support workers, administrative staff, allied health professionals, technical staff and many clinical support roles. It excludes doctors, dentists and most very senior managers, who are covered by separate frameworks.

Is Agenda for Change legally binding?
AfC is not statutory. It becomes legally binding only when incorporated into an employee’s contract, usually through the NHS Terms and Conditions of Service Handbook. Once incorporated, tribunals interpret AfC using standard contractual principles.

Can private providers adopt Agenda for Change?
Yes. Independent and third-sector providers delivering NHS services may adopt AfC or NHS-equivalent terms. Once incorporated into contracts, AfC must be followed even though the organisation is not part of the NHS.

How does job evaluation work under AfC?
The NHS Job Evaluation Scheme assesses job demands across nationally agreed factors. Jobs are matched to national profiles or evaluated locally using trained panels. The outcome determines the correct pay band and supports equal pay compliance.

What overtime rates apply under AfC?
Under Section 3 of the NHS TCS Handbook, overtime is generally time-and-a-half for weekday and Saturday work and double time for Sundays and bank holidays. Part-time staff receive additional hours at plain time until they reach 37.5 hours.

Can employees challenge their banding?
Yes. Staff can request a review where duties have changed or where they believe the original evaluation was incorrect. Requests must be handled under formal AfC dispute procedures and evaluated by trained panels using approved methodology.

How are AfC pay rises decided?
Annual pay awards are influenced by the NHS Pay Review Body (NHSPRB), whose recommendations are advisory. Government sets the final award, and employers must implement it when announced.

Can an employer opt out of AfC after adopting it?
Only through lawful contractual variation. Employers cannot unilaterally withdraw AfC terms from existing staff without agreement. Attempts to do so risk breach-of-contract and unlawful deduction from wages claims.

Does AfC apply to NHS bank staff?
Not automatically. Many bank arrangements use different pay and enhancement structures. Whether AfC applies depends on the specific contractual terms agreed with the worker.

FAQs Summary
These FAQs clarify how AfC operates contractually, how pay structures and job evaluation work, what overtime and enhancements apply and how HR should navigate disputes, pay awards and contractual variation. The answers reinforce that AfC compliance depends on correct contractual incorporation and consistent application of the NHS TCS Handbook.

Conclusion

Agenda for Change is the contractual framework that underpins pay, grading and core conditions for the majority of NHS staff. For HR professionals, its correct application is essential to maintaining lawful pay practices, ensuring equal treatment and safeguarding consistency across the workforce. The framework’s job evaluation system supports pay transparency and equal pay compliance, while its structured approach to progression, hours, allowances and enhanced contractual benefits sets clear expectations for both employers and staff.

Adopting AfC requires rigorous governance. HR teams must ensure that banding decisions are evidence-based, contractual terms are applied accurately and progression and allowance entitlements are implemented consistently. The national nature of AfC means that reforms, pay review decisions and policy developments can have immediate implications for local systems and processes, making ongoing monitoring a core HR responsibility.

Understanding AfC as both a contractual and operational framework allows HR professionals to manage staff effectively, reduce legal risk and uphold the standards expected within organisations delivering NHS services or providing NHS-equivalent terms. Accurate application also helps to prevent equal pay litigation, particularly in staff groups where gender imbalance is common, such as nursing, administrative and healthcare support roles.

Taken together, AfC provides the backbone of consistent, equitable and legally sound employment practice across the NHS and organisations aligned with NHS terms. Applying it thoroughly and lawfully ensures that employees receive the pay, protections and progression rights embedded within the framework.

Glossary

Glossary Summary
This glossary sets out the key contractual and technical terms that underpin AfC, enabling HR professionals to interpret the framework accurately and apply NHS TCS rules consistently across recruitment, progression, pay, allowances and job evaluation processes.

Useful Links

Useful Links Summary
These resources provide direct access to the contractual documents and statutory guidance underpinning AfC, including the NHS TCS Handbook, Job Evaluation Handbook and relevant government publications. HR professionals should refer to these documents when interpreting or applying AfC terms.