Pension and payroll services

1 October 2026

Freedom of information request reference number FOI059.

Request

Please provide following information in relation to the provision of payroll and pension services within your organisation:

  1. Who is the current provider of payroll and pension services?
  2. Is the service provided in-house, outsourced, or through a combination of both?
  3. Does the current arrangement include both HR/payroll administration (HR data entry) and payroll processing (back-end payroll processing)?
  4. Please provide a brief description of the services included within the current payroll arrangement.
  5. When did the current contract/arrangement commence?
  6. When is the current contract/arrangement due to expire?
  7. What is average number of payslips produced each month?
  8. What is the current annual contract value?
  9. Does the organisation intend to re-tender the payroll service when the current contract expires?
  10. Which procurement framework would you expect the new provider to be?
  11. Where will the tender document be published?
  12. If available, please provide the procurement/contract reference number or a link to the original contract award/procurement notice.

If any of the information requested is already available publicly, please provide a link to where it can be accessed.

Decision

HSSIB holds this information. We will respond to each of your questions in turn.

  1. Who is your current payroll and pension services provider?
    HSSIB's payroll and associated pension administration services are provided by NHS Payroll Services, hosted by Northumbria Healthcare NHS Foundation Trust. HSSIB uses the NHS Electronic Staff Record (ESR), provided through the NHS Business Services Authority, for its HR records.
  2. Is the service provided in-house, outsourced or through a combination?
    This is a combination. HSSIB maintains its HR information within ESR. Payroll processing and associated pension administration services are provided externally by NHS Payroll Services, hosted by Northumbria Healthcare NHS Foundation Trust.
  3. Does the current arrangement include both HR data entry and payroll processing?
    No it does not, HSSIB is responsible for entering and maintaining the relevant employee/HR data in ESR. NHS Payroll Services undertakes payroll processing and associated services using the information provided through the agreed processes.
  4. Please provide a description of the services provided.
    The contracted service includes payroll processing and administration, associated NHS Pension Scheme administration, statutory payroll deductions and reporting, payroll control and reconciliation processes, year-end payroll processes and associated employee payroll/pension support.
  5. What is the contract commencement date?
    The commencement date is 1 October 2023.
  6. What is the contract expiry date?
    The contract expires on 31 March 2028.
  7. What is the average number of payslips processed each month?
    HSSIB had 53 directly employed staff, equivalent to 46.67 whole-time equivalent staff, as at 31 March 2026. Payroll is processed monthly, so the number of payslips issued is broadly consistent with the number of directly employed staff, subject to normal staffing changes during the year.
  8. What is the annual contract value?
    The value is £18,000 per annum.
  9. Does the organisation intend to re-tender the service?
    HSSIB is subject to a planned merger with the Care Quality Commission (CQC), following which it is expected that payroll services will be provided through the CQC’s existing arrangements. In view of this planned organisational change, HSSIB is not currently in a position to commit to a new long-term payroll services contract.
  10. Which procurement framework would you expect to use?
    No procurement framework has currently been identified. HSSIB is in the process of agreeing a short-term extension to its existing arrangement and, subject to the planned merger with the CQC, expects to utilise the CQC’s payroll arrangements thereafter.
  11. Where will the tender documentation be published?
    HSSIB is not currently planning a new long-term procurement exercise for payroll services. Accordingly, no tender publication route has been determined. Any future procurement, should one become necessary, would be undertaken in accordance with the applicable public procurement requirements.
  12. Please provide the original procurement/contract reference or award notice.
    There was not an award notice as this service is managed via a Service Level Agreement at less than £25k a year.
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