How is the LMC funded?
The Statutory Levy
All LMCS are funded by a statutory levy. This amount is collected from practices and is based on an amount per patient. This is reviewed annually. It is currently set at 37p.
This money funds the office and officers of the LMC. It also funds the representative committees with representatives being paid per attendance and reimbursed travel expenses.
The National Levy
This is a separate levy which is collected to find the National Negotiating Committee (GPC) and the GP Defence Fund (GPDF) and supports national negotiations regarding General Practice.
This rate is set by the GPDF and is also based on an amount per patient. It is currently set at 6p.
Practice Support Services
PSS is a wholly owned subsidiary of Nottinghamshire LMC Ltd. It was established in 2008 to ensure that income from non levy related activities did not compromise Nottinghamshire LMC Ltd’s ‘non profit making’ status. Nevertheless, Nottinghamshire LMC Ltd benefits from income from PSS in the form of staff cost recharges, and occasional dividends. Copies of its accounts are available on request. The Directors of Nottinghamshire LMC Ltd constitute the Directors and Members of PSS. Chris Locke is the Company Secretary of both.
Nottinghamshire LMC Ltd has actively sought to defray its running costs by generating income through PSS from:
- Payments for Secretariat services to other LMCs
- Commercial sponsorship of conferences, seminars, etc
- Payments from practices for various ‘added value’ services
- Commissions from the LMC Buying Group