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The NHS Cost Claim Back Scheme

The NHS Cost Claim Back Scheme is for members affected by the Public Service Pensions Remedy

Those affected by the Public Service Pensions Remedy (PSPR), sometimes called the McCloud remedy, will have a choice of 1995/2008 Scheme or 2015 Scheme pension benefits for their membership during the remedy period – the remedy period is from 1 April 2015 to 31 March 2022.

The timing of when you’ll be asked to make this choice depends on when you retire. If you have not done so already, you can find out when you'll make your decision to see when to expect to make your choice. Affected members with membership in the 2015 Scheme during the remedy period have had this membership rolled back into the 1995/2008 Scheme – you can find out more in our page on rollback. This will help you decide if it's better for you to be rolled back, or to choose to have this membership treated as if it was in the 2015 Scheme.

What is covered by the NHS Cost Claim Back Scheme

This scheme allows members directly affected by the remedy, or their personal representatives or designated persons, to apply to claim back direct financial losses or tax losses, incurred because of the remedy. The remedy has been designed to correct the age-related discrimination identified in the McCloud ruling, and choosing pension benefits for the remedy period will be straightforward for most members. However, a small minority with more complex situations may need professional advice. Members can apply to recover the cost of this advice, as well as any other direct financial or tax losses, using the Cost Claim Back Scheme. 

Where to find the scheme rules and application form

The full details of the NHS PSPR Cost Claim Back Scheme are explained in the scheme rules. You should read these rules before completing a claim form. The types of losses this claim form covers need to meet conditions 1 or 2 in paragraph 5 of the scheme rules.

Use the HMRC Digital Service to correct tax

Members whose tax position is affected should first use the HMRC Digital Service. Follow the process on the HMRC website for how to claim overpaid tax, or ways to pay tax you may owe.

Before you use this service, you’ll need the information in your Remediable Pension Savings Statement (RPSS). This will include your pension growth for the remedy years your pension was affected. We’ll be sending the majority of active or deferred remedy members their RPSS by October 2024 – find out when remediable pension savings statements will be issued. There’s no need to ask us for your RPSS in advance, as we’ll make sure you have the information you need in good time.

Types of costs you can claim back

You can apply to claim back the costs of professional services or other financial losses that are due to the discrimination or application of the remedy. For example, these could be costs incurred where you employed an Independent Financial Advisor (IFA) or accountant for advice about the move to the 2015 Scheme, or if you need advice about the effect of rollback on your tax position once you’ve received your RPSS.

Use a separate Cost Claim Back form for direct financial losses incurred from different providers. A claim for accountancy services used to complete an application via the HMRC Digital Service, is limited to £1,000 including VAT, per piece of advice. A claim for IFA services to help you make your decision about your choice of pension benefits for the remedy period, is limited to £500 including VAT, per piece of advice.

If there’s a reason not linked to the PSPR which means you owe money to the pension scheme and we’ve agreed to reduce what you owe, you can still apply to claim back costs covered by the Cost Claim Back Scheme.

Costs not covered by the Cost Claim Back scheme

You cannot use the Cost Claim Back Scheme to claim costs you’ve already had a payment for through a court order, another scheme, or those where you’ve previously submitted a claim.

Circumstances where we’ll contact members automatically

There are some circumstances we know are affected by the McCloud remedy and we’ll be writing to members in these situations automatically. These are:

  • Ill Health Retirement benefits
  • Early Retirement Reduction Buy-outs (ERRBO) contributions paid during the remedy period
  • practitioners who paid part-year contributions to the 2015 Scheme during the remedy period
  • those who chose to move their pension benefits into the 2008 Section as part of the 2015 Choice 2 exercise
  • those who purchased additional pension during the remedy period
  • those who were subject to a pension sharing order after March 2015

We’ll also be updating our website over the coming months with processes for remedy members whose finances were affected due to:

  • being in a worse tax position because of transitional protections that were in place
  • a decision not to purchase Additional Pension due to the 2015 changes
  • a decision to opt out of the NHS Pension Scheme, because they did not want to move to the 2015 Scheme – we’re developing a process so these members can apply to reinstate opted-out remedy period membership into the 1995/2008 Scheme


If you’re affected by the remedy, you’ll be sent a Choice Communication so you can decide which pension benefits are best for you for the remedy period. Active and deferred members will be sent their Choice Communication when they retire, unless this is before summer 2024. If you’ve already retired by this date, you’ll be sent your Choice Communication from summer 2024.

If you need to correct your tax position due to the remedy, you’ll automatically be sent a RPSS.

When you have your RPSS, use it with the HMRC Digital Service to see if you have over or underpaid tax, for any of the remedy period tax years.

You can apply for a refund using the Cost Claim Back Scheme if you:

  • paid for professional advice about the move to the 2015 Scheme which is no longer valid due to rollback
  • need additional advice due to the remedy changes
  • have incurred other direct financial loss

You can find out more information in the full NHS PSPR Cost Claim Back Scheme rules. You can apply up to 12 months after you get your RPSS or you receive your first Remedial Service Statement.

We’ll continue to add updates about the NHS Cost Claim Back Scheme to our website. You’ll find the latest information on this page, or sign up for newsletter alerts in our Member Hub.