Who's waiting for back pay in 2026/27
England, Wales and Scotland paid their 2026/27 awards from April, so their staff have no arrears this year. Northern Ireland is different: the 3.3% award still needs NI Executive approval because the budget hasn't been agreed, and as of 18 October 2026 HSC staff are still on the rates from 1 April 2025. UNISON is pressing for it to be backdated to 1 April 2026. If it's paid on the same scales as England's, a Band 5 at the bottom of the band would get £1,024 a year more, plus arrears for every month since April.
When recent awards were paid late
- Northern Ireland 2025/26: effective from 1 April 2025, but paid in February 2026 (monthly payroll on 25 February), with the arrears.
- Scotland 2025/26: the 4.25% award was topped up to 4.4% under the inflation guarantee, with the new rate in February 2026 salaries and most of the arrears in March.
Why back pay is taxed so heavily
Back pay is pay, so the NHS pension, income tax and National Insurance all come off it, and usually a student loan too.
- National Insurance is worked out on the month you're paid in. The 8% band runs up to £4,189 a month, so for most staff the arrears are charged 8% like normal pay, but if a big lump takes your month over that line, the part above it is charged only 2%.
- Income tax is collected through PAYE, which spreads your tax-free allowance across the year, so arrears are taxed at roughly your top rate. If they take you into the 40% band for the year, some of them will be taxed at 40%.
- Pension contributions are taken on the arrears at your tier rate, because the extra pay is pensionable.
Back pay and maternity pay
If you were on maternity leave during the backdated months, the handbook says maternity pay should be recalculated as if the award had applied throughout the period it's based on, so you should get arrears on your maternity pay too.