NHS Could Spend £600m On Redundancies In A Year

Nhs

First Posted: 11/02/2012 10:18 Updated: 11/02/2012 10:19   PA

More than £600 million could be spent on NHS redundancies in one year as a result of the government's controversial reforms, figures show.

Estimates from the Department of Health show £616.6 million accounted for in possible redundancy costs for 2011/12.

The health service has already made £195 million of redundancy payments in 2010/11, all of which have been attributed to "the modernisation" of the NHS, documents show.

Total redundancy costs as a result of the Health and Social Care Bill, including cash already spent in 2010/11, are expected to be between £632 million and £989 million, with a government "best estimate" of £810 million.

Predicted job losses in the NHS - from April 2011 onwards - as a direct result of the reforms, which are still going through Parliament, is 9,100 to 16,800.

Howard Catton, head of policy at the Royal College of Nursing (RCN), said the redundancy costs were "huge".

He said: "This is at a time when we are having to make cuts to services which are impacting on the frontline.

"This is a huge amount of money that could be better spent, not to mention the loss of expertise and organisational memory that will result from this."

Mr Catton said hospitals could use the money to protect vital services for patients.

"Given how challenging the times ahead are for the NHS, we can ill afford to make cuts to frontline staff or lose the expertise NHS managers have in terms of tackling those challenges," he added.

RCN figures gathered from NHS trusts suggest more than 56,000 NHS positions across the UK are due to be cut, both as a result of reforms and to save costs in the long run.

The NHS has been told to find up to £20 billion in efficiency savings by 2013/14.

A Department of Health spokesman said the £616.6 million in redundancy costs was accounted for in the total cost for the reforms.

"Our planned cost for NHS reform remains exactly the same as we published in the impact assessment in September 2011.

"The short term costs are dwarfed by the £4.5 billion we will save over the course of this Parliament and £1.5 billion every year after that."

Shadow health secretary Andy Burnham said: "These eye-watering figures provide clear proof that the Tory-led government has lost control of its NHS re-organisation."

Burnham added: "It is simply unforgivable for David Cameron and Andrew Lansley to be wasting such inflated sums of money on this unnecessary vanity project when nursing posts are being lost and waiting targets are being missed.

"Scandalously, some of these pay-offs have been made to people who may end up being re-employed by Mr Lansley's new bodies.

"Today's figures are just the tip of the iceberg. They back up Labour's analysis that the government has severely underestimated the true cost of its unnecessary NHS reorganisation."

Unite head of health Rachael Maskell said: "The figure of £617 million to be spent on redundancies is yet more evidence of the wasteful nature of Andrew Lansley's deeply flawed so-called NHS reforms.

"Instead of paying off managers and shuffling them around to new posts within the Clinical Commissioning Groups, this money should be spent on frontline services and reducing waiting lists that are starting to climb dramatically because of the government's policies.

"The risk register that the government refuses to publish, we believe, contains figures that reveal the spiralling cost of the NHS reorganisation - no wonder, they do not want it to see the light of day - it is too damning.

"Andrew Lansley has become Whitehall's Captain Chaos."

Christina McAnea, Unison's head of health, said: "Despite Tory promises, the NHS is facing challenging times.

"Every penny possible should be going on patient care. Instead, as waiting lists climb and health workers lose their jobs, it is being wasted on redundancies.

"This is madness - we know many of the staff that lose their jobs will only go on to work with the new GP groups.

"It is a scandal that millions of pounds of public money is being wasted on a major NHS overhaul that no-one wants.

"Health professionals, unions, even Tory Cabinet ministers think the government should drop the Bill.

"When will they stop wasting time and money and start listening?"

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More than £600 million could be spent on NHS redundancies in one year as a result of the government's controversial reforms, figures show. Estimates from the Department of Health show £616.6 mill...
More than £600 million could be spent on NHS redundancies in one year as a result of the government's controversial reforms, figures show. Estimates from the Department of Health show £616.6 mill...
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01:43 PM on 02/12/2012
The last Labour Goverment started the privatisation of the NHS with PFI hospitals financed off the books, now the repayments have become due the hospitals in question cannot pay the bill. This problem has to be addressed money has to come from somewhere.

Another of Brown's schemes.
12:18 PM on 02/12/2012
Why was my comment removed?
01:12 PM on 02/12/2012
Luck of the draw. It is haphazard, to say the least, when comments are removed. There is no logic.
12:11 PM on 02/12/2012
Why try to run the service as a business and in competition with other providers? All this drivel has been a programme of smooth talk to install accountancy based ideals in system which was designed, managed and staffed for treating the sick and vulnerable in our society.
Yes the service has lose its way, but due entirely to consecutive governments installing non medical businees orientated management forcing hands on medical and nursing staff to meet impossible league table demands with ever reducing resources at hand.
Thatcher must bear the blame for the current state, but the likes of Brown, Blair and the 'New Labour Tories' could have reversed the trend to privatisation... instead they leapt on the bandwagon.
The Real Labour Party who conceived and installed the NHS as a Non-Profit making Caring Service must be spinning in their graves seeing OUR (not the governments) Health Service being sold off to Foreign Investors by greedy overpaid schoolboys who have private healthcare anyway.
11:45 AM on 02/12/2012
Hinchinbrook NHS hospital has recently been taken over by the foreign private health care company 'Circle '.
The privatisation has actually started , so commenting now seems pointless until a full explanation is given as to exactly what is going on with the NHS. It seems the discussion on all other aspects is a smoke screen while privatisation is happening' now.'
11:11 AM on 02/12/2012
The Prime Minister - whose disabled son Ivan died in 2009 - said: "As a parent, night after night, I've known what it is to have the NHS by your side. I've seen the dedication - the reassurance that if the worst happens, the NHS will be there for your family.

"That's why I so strongly support the founding principle of the NHS: health care for all, free at the point of use, unrelated to the ability to pay."

What we in the NHS would like to know is when is it likely to become free for all point of use and unrelated to the ability to pay; there is a three tier structure now and it will only get worse under this legislation change, except of course if you have private medical cover, then you can bypass the failings and have care when you need it, unlike the majority in this Country.
10:53 AM on 02/12/2012
getting clinicians more closely involved in comissioning is a good thing but that could have been achieved by putting more clinicians at the top inside hospitals and pcts in mgment and commisisoning roles. No need to break the whole system then, just to add value to it. By putting GPs in charge of the cash, many of them do not have the business experience or the desire to take on this duty, we will get a patchy commissioning process including examples of GPs with business interests in private organisations pulling patients away from hospitals whilst taking personal profit from that action. This is already evident.
08:10 AM on 02/12/2012
The changes that need to be made to the NHS are so blindingly obvious it is unreal! That recent advert on tv, how much was that? so you go and see your GP, and then go on a two year waiting list to see a consultant? the point is what to this?? There are management staff earning in excess of £70,000 a year with reduced working days, not hours! most of the surgical teams are temps who want to milk the overtime system for every penny!! to give it a real chance of success, the politicians need to grow some BALLS and actually make some effective decisions.
11:48 AM on 02/12/2012
It's a very long time since anyone had to wait 2 years to see a consultant
11:55 AM on 02/12/2012
Although of course the way the Coalition is going, it won't be long before we are back in that situation!! :(
HUFFPOST SUPER USER
Dombeyandson
08:09 AM on 02/12/2012
Lansley is determined at all cost to press on with his plans to "privatise the NHS by simply cherry picking its administration. Shoud he be able to push his bill through parliament to divest the Secretary of State's statutory obligation under the 1948 National Health Act to provide national health paid by the population he will have achieved the frst stage pf privatiseation. To ensrine GPs with budget responsibility placing GP services as independent they will naturally resort to tendering to ensure they achieve value for money. It happened with the provision of dentistry and now look; dental services are private with NHS lipservice. A GP will be free to start a practise encouraging NHS patiients to enlist and establish a clientbase and when sufficiently fulll will write to each pateint to offer the provision of private GP services. It will have built a business using the NHS. Currently it is illegal for GP practises to develop as business models and cannot be sold as such. The GP is employed by the NHS and is paid by by the NHS whereas independent budget control will change the focus from services to business enterprise. Lansleys reforms will change that - incidious isn't it? That is progress? The Tories want the NI income but not the responsibility.
10:36 PM on 02/11/2012
Lansley,is just another tory doughball trying to get his toffy pals a cut in the vast amount of money that will cost the public ,when he opens up to competition[in other words privatisation] look what happened to all the other industries that were open up to competition,rail track,bt,british gas/electricity,buses,trains.If we have not learned our lessons by now as a voteing communityto what they are up to then the n.h.s. along with royal mail who they are also trying to privatise will cost a fortune. Check the history on all they have sold it costs a fortune to pay your bills now.
09:57 PM on 02/11/2012
How can you make so many people redundant when the population is vastly increasing.
12:08 AM on 02/12/2012
To improve efficiency, supposedly!
02:52 AM on 02/12/2012
but not in practice.
09:55 PM on 02/11/2012
That's what the cuts and savings are for ,to shape a different world and to pay for the redundancies along the way.
09:40 PM on 02/11/2012
Some 'ex' colleagues at our local hospital, nurses, have been made redundant, signed up to an agency which supplies nurses to our local hospital and are working again at the hospital at a greater cost to the NHS than if they had been kept on as Health service employees. It doesn't make sense. They can now choose the hours they work, holiday when they want and are not involved in the day to day politics of it all.
10:28 PM on 02/11/2012
WHO OWNS THE AGENCY,SOME SMUG TORY NO DOUBT.
09:39 PM on 02/11/2012
Some areas of NHS are overstaffed in our area. Went to a health centrea few weeks ago. Behind the reception desk there were 3 people. 1, the receptionist. 2, another lady sat talking to the receptionist. 3, a chap at the back swinging round on a chair supping his cup of coffee. I approached the recptionist to say I waas there for a physio class and was told just to sit and wait and the physio would come for me. The same was said to another person that came for social services and a person that came for podiatry. Why did we need a receptionist? A notice saying wait till you're called would have sufficed. When I got into the physio dept there were 6 patients and we all did exactly the same excersize routine. We had 2 physiotherapists and a secretary to type their notes onto the computer for them - they were obviously not capable of doing something so menial themselves. I wonder if these were some of the many jobs that were "created" under labour. What a waste of public funds. Is there any wonder, if all health centres are run with the same overstaffing, that there is no money left for essential health care. While on the subject, stop paying out countless millions on translators. Use that money foe nurses etc:
02:53 PM on 02/12/2012
We should bring back the Matron, she will sort everything out. She's a woman!!!
photo
HUFFPOST SUPER USER
David Daisy May Boldock
Yorkshire..Gods Own Country
04:04 PM on 02/12/2012
Who did you have in mind?
Hattie Jacques lol
04:21 PM on 02/12/2012
Too! Right!
She'll bring back smartness, accountability, cleanliness, discipline & deal with on the spot complaints!
09:26 PM on 02/11/2012
In 2009 Derek Simpson, General Secretary of Unite warned a trusting and gullible electorate if they thought the 'Tory lifeboat' was going to come and rescue them from 'the sinking ship of New Labour' then they WILL be in trouble.
Sadly his advice went unheeded.
When will working class Tories ever learn?
12:11 AM on 02/12/2012
You would rather have gone down with the ship?
02:29 AM on 02/12/2012
Well actually under Labour the ship was still afloat (albeit just :-)) Under the Tories the ship is rapidly sinking. (The poor on the lower decks are getting it first, whilst the rich nick the lifeboats)
This comment has been removed.
majdf18148
I have nothing to declare but my curiosity
08:17 PM on 02/11/2012
There are about 130 Primary Care Trusts(PCTs) that will become redundant with, say, an average 150 managers and admin staff each. That's 13.5k staff facing the bullet straight away. Many of the more senior more expensive staff will accept redundancy , lump sum and pension and then re-enlist as an employee of the GP Commissioning Groups, the successor bodies to the PCTs. I don't worry much about privatisation, local GPs know that even a small decrease in investment in their local hospital will render it a financial liability, they won't want the flak associated with being responsible for the demise of the local hospital. I worry more about the increase in the competetive market structure of the NHS where hospital is competing against hospital, in a not for profit ethos. Post code care will increase, GPs won't cope with the rigours of properly managing their budgets and commissioning plans AND running their practises with the result these commissioning duties will slowly but surely return to the outstretched and waiting hands of the same former PCT managers.... those who will soon be made redundant at huge cost. The NHS does need reform but structured reform that eliminates waste, ensures high level care is provided on a national basis, that breaks the hold of insular senior managers paid vast sums to mismanage NHS trusts and ensures we mostly leave hospital better than when we went in; not the reverse as is so often the case at present!