Following a public consultation earlier this year, the council of the GDC has approved on October 21, 2022, the regulator’s strategy for the next three years. In so doing, the GDC also set the Annual Retention Fee (ARF) level for 2023 amidst considerable economic uncertainty.
The ARF will be £690 for dentists (an increase of 1.5 per cent) and £114 for dental care professionals (no increase).
The rise for dentists is far below the 10.1 per cent rate of inflation (CPI, 12 months to September 2022) and the ARF level for both dentists and dental care professionals is lower than the GDC indicated when it consulted on plans in the summer. The lower-than-expected rates were achieved by the regulator tightly managing costs and absorbing, where possible, the impacts of inflation, as it committed to doing when it set out its expenditure plans.
In the context of such uncertainty, the council has set fees at a level that ensures the GDC can continue to fulfil its statutory role of maintaining patient safety and public confidence, while sensibly managing the financial risks caused by high and volatile inflationary pressures.
A further outcome to the council meeting was a review and update to the Registration Application Fee levels. The Registration Application Fee is the charge the GDC makes to all first-time applicants to cover the costs of processing and assessing applications. The fee was introduced three years ago to avoid these costs being met by those already on the register, in line with our fee-setting policy which aims to remove cross-subsidy between different groups of dental professionals wherever possible.
GDC hair, Lord Toby Harris said, “I’d like to thank everyone who shared their views with us on our plans for the next three years. We have listened to that feedback and look forward to publishing our final strategy in the coming months. Some of that feedback related to the fees we charge, and we’re really pleased to have been able to further challenge our own costs and deliver a lower ARF for dental professionals in 2023 than we initially forecast.
“We have statutory duties and so, to ensure these are fulfilled, we must be financially viable. But that is not the only reason we must continue to operate - I believe dental professionals gain great benefit from regulation as it is one of the things that underpins the reputation of the professions as a whole.”
In the consultation on its strategy, the GDC warned that due to high and sustained inflation it may need to increase the ARF in 2024 and 2025. While this does mean less certainty over the coming years in relation to the level of the fee, this approach enabled the GDC to make a prudent provision for inflation whilst keeping 2023 costs as low as possible for dental professionals. If further rises due to inflation are necessary, the regulator commits to limiting these to the rate of inflation at most, while continuing to challenge its costs.
Ian Brack, GDC chief executive and registrar said, “In the current uncertain and volatile economic climate, it’s essential that we manage financial risks – particularly those relating to inflation. We’re confident that our expenditure plans will ensure we are able to fulfil our primary role of maintaining patient safety and public confidence.
“While we will continue to aggressively manage costs, as we have said we may need to increase the level of the fee in the future. Any such increase will, at most, be in line with the rate of inflation at the time, or as a result of other exceptional and unanticipated circumstances.”
The GDC looks forward to publishing the consultation outcome and final strategy in the coming months.