Payroll Services

NHS organisations are increasingly seeking shared services and outsourcing solutions for back-office functions as vehicles for achieving efficiency savings.

Benefits of the contract

The new framework for the provision of Payroll Services provides a means of selecting a cost-competitive supplier to deliver these services by way of a call off arrangement. The framework also provides a set of standard service specifications and performance indicators which helps avoid duplication of effort and enables NHS organisations to buy services in a timely and legally compliant manner.

In addition to LPP and other NHS organizations, the framework is also available to any other public sector orgainisation where there is a collective effort to combine back-office functions and the NHS organisation is the primary Contracting Authority.

  • The Framework has established all inclusive, price per payslip ceiling prices that a supplier may not exceed when delivering services to any participating authority.
  • Standard services specifications and key performance indicators have already been established that participating authorities can use as the base for developing their service.
  • The breadth of services and the flexibility built into the framework enables NHS organisations to think more proactively about how they might outsource their Payroll Services.
  • Volume discounts are available to authorities using the framework on reaching pre-defined payslip levels.
  • NHS organisations are able to save on time and costs associated with running a full procurement.
  • A full suite of mini competition/tender documents are available to use, saving time.


IMPORTANT NOTE- This framework expires on the 21st November 2020. You should only commence a mini competition under the framework if you are sure you can award a contract by this date. LPP are not renewing this framework but will still be working with NHS Trusts who wish to procure Payroll Services. Please contact for further information.

Contract description

Payroll services (mini competition).

All suppliers awarded to the framework are also able to include payroll elements of ESR administration within the scope of the service if required.


Payroll Services

Salford Royal NHS Foundation Trust (as host of ELFS Shared Services)

Equiniti HR Solutions Limited

NHS Shared Business Services (SBS)

Northumbria Healthcare NHS Foundation Trust (as host of NHS Payroll Services)

St Helens & Knowsley NHS Teaching Hospital Trust


Please note that Serco were originally awarded to the framework but as of January 2019 have withdrawn.


Contract Overview
Start 22-11-16
End 21-11-20
Contract Type Framework (Further Competition)
Accessible to All NHS
Authority London Procurement Partnership (GSTT)
OJEU Award Ref 2016/S 172-309970
Initial Period (Years) 3.00
Extensions remaining 0.00
LPP Contact Laura Whitworth
LPP Ref LPP/2016/010