NHS England has said it will cover the “inflationary rises” in indemnity costs for GP practices from April 2017.
The new indemnity scheme will run for “at least” two years, NHS England said in a board document published on Thursday.
The cost of the scheme will be based on annual inflation rises in indemnity experience by GPs, multiplied by the number of GPs in a practice.
HSJ understands the reimbursement will be paid to practices in a lump sum, in arrears and practices will be given discretion in how they distribute the money among their GPs.
“The payment is intended to contribute to the indemnity costs of all GPs at the practice. We expect this to be used fairly and for the purpose it was intended for,” an NHS England spokesman said.
The policy, first mentioned in the General Practice Forward View, aims to address the problem of increasing indemnity costs for GPs.
NHS England also said that the winter indemnity scheme, announced December 2015, will run for another year. Further details will be published in autumn. The scheme reimburses the indemnity costs for out of hours sessions and NHS England has made £2m available for the scheme.
It was also confirmed that the first £16m of the proposed £40m general practice resilience programme would be released this week.
Charlotte Jones, a chair on the British Medical Association GP committee, said: “The increasing costs of indemnity cover is causing concern for all GPs and is starting to have a detrimental impact on most GPs who simply cannot afford to work more sessions or maintain their current working commitments.
“This announcement does offer some immediate financial support to practices that is much needed, and is to be welcomed, but we will be examining this in more detail. We do need to find a long term solution to this issue that is not just a quick fix.”