The GDC has proposed maintaining the annual retention fee (ARF) for dentist registrants at £890, the highest rate paid by any comparable UK health profession. BDA analysis has identified that the GDC’s approach is flawed, and has set out key savings that would enable the regulator to easily remain financially sustainable while focusing on its statutory duties.
The BDA has also published legal advice indicating that the regulator's consultation is potentially unlawful. The GDC was previously defeated in the High Court in judicial review proceedings over its handling of the consultation for the 2015/16 ARF.
Mick Armstrong, chair of the British Dental Association, said:
“After defeat in the High Court we had hoped the GDC might actually have learned its lesson on transparency. Sadly the regulator has served up another fees consultation with a familiar line in disinformation and predetermined results.
“The regulator is continuing to overstep its remit, and is still expecting registrants to pay for that excess. So we have set out to identify straightforward and immediate savings that ensure that the GDC can deliver on its core functions.
“Our regulator has not offered any clear justification for maintaining gargantuan reserves at our expense. Keeping £10m of fees set aside for the rainy day its own models suggests will never come isn’t ‘prudence’ or ‘best practice’, it’s simple hoarding. The GDC could now ensure both fair fees and its own financial security through a realistic policy.
“Setting the annual retention fee at no more than £500 for 2016 would send the clearest possible signal that the GDC is finally prepared to live within its means and focus on its day job. It’s time to dispense with the war chests and the empire building, and get regulation right.”
GDC Reserves: Key points
- The GDC’s excessive reserve policy is keeping the ARF at £890;
- In the last three years the GDC has never been left with less than £13m in its current account and that’s on top of more than £10m in reserves;
- The GDC has been able to draw £9m from petty cash to fund improvement works to its London HQ and still stay in credit.
The BDA’s full response and legal advice is available to download here.