UK (Parliament Politics Magazine) – NHS trusts in England may cut 100k jobs as cost-slashing orders hit admin roles, prompting leaders to seek urgent Treasury support.
As reported by The Guardian, over 100,000 NHS jobs in England may be slashed amid sweeping reforms and aggressive cost-cutting pushed by Health Secretary Wes Streeting and NHS leadership.
NHS leaders warn the Treasury that they lack the funds to manage potential job cuts, urging support as redundancy costs may exceed £2bn.
What did NHS chief Jim Mackey order trusts to cut by 50%?
To cut costs, Sir Jim Mackey, NHS England’s new CEO, has instructed all 215 healthcare trusts to reduce corporate function costs. It includes HR, finance, and communications, by 50% by year-end.
According to the NHS Confederation, several trusts believe that following the new cost-cutting measures could lead to job cuts ranging from 3% to 11% of their workforce.
The job cuts across all 215 trusts could range from 41,100 to 150,700, as these trusts employ 1.37 million people.
What did Matthew Taylor say about NHS job cuts and delays?
Matthew Taylor, head of the NHS Confederation, warned that the scale of savings demanded from trusts could prevent them from tackling the persistent delays patients face in treatment.
He urged the Treasury to set up an NHS national redundancy fund to cover job loss costs, highlighting trusts’ financial inability to manage the expenses.
His remarks came just ahead of Streeting and Mackey’s appearance, where they were set to face questions from MPs on the Commons Health and Social Care Committee to discuss their plans.
Mr Taylor said,
“Health leaders understand the troubling financial situation facing the country and the need to improve efficiency where they can, as they have already demonstrated by significantly reducing their planned deficit for the year ahead.”
He stated,
“However, the scale and pace of what has been asked of them to downsize is staggering and leaves them fearful of being able to find the right balance between improving performance and implementing the reforms needed to put the NHS on a sustainable footing.”
NHS Confederation CEO added,
“They have told us that unless the Treasury creates a national redundancy fund to cover these job losses, any savings the government hopes to make risks being eroded at best and completely wiped out at worst.”
According to him, trusts need financial security to effectively deliver the government’s 10-year health plan.
What did Sarah Woolnough say about NHS spending and efficiency?
Sarah Woolnough, CEO of the King’s Fund, highlighted a study showing that only 14% of Britons think the NHS uses its budget efficiently.
She pointed out,
“The UK spends just 1.9% of its health budget on administration costs – the sixth lowest out of the 19 comparable countries measured.”
Ms Woolnough said,
“You need highly skilled and experienced people in key behind-the-scenes roles – including management and administration – in order to enable frontline staff to focus on delivering great care.”
She added,
“In the drive to raise NHS efficiency, national politicians need to be aware that cutting costs is not the same as increasing efficiency.”
What did Thea Stein say about NHS cost-cutting measures?
Thea Stein, head of the Nuffield Trust, shared Woolnough’s concerns regarding the potential risks of ongoing cost-cutting measures.
She stated,
“There is certainly duplication and wasted time in NHS governance, but the government needs to be careful about exactly what gets cut.”
Ms Stein said,
“Corporate staff in NHS trusts include the digital specialists, analysts and recruitment professionals needed to improve NHS efficiency and keep wards staffed.”
What did the former NHS trust chief executive say about past cuts?
An ex-NHS trust chief executive said,
“Last year’s Darzi review, commissioned by the current government, noted that cuts in the last round of squeezing oversight bodies in 2013 left the NHS short on capable administration and ended up being reversed.”
How many jobs will be lost due to the NHS reorganization and mergers?
Around half of NHS England’s 15,300 personnel could lose their jobs as the organisation merges with the Department of Health and Social Care. Some workers were also expected to leave the DHSC.
A further 12,500 jobs are at risk within the NHS’s 42 integrated care boards, which employ a total of 25,000 staff members.
What did DHSC say about NHS changes and investment plans?
A DHSC spokesperson stated,
“We will work with the NHS to make the changes needed to get the health service back on its feet, and will focus on delivering for patients and taxpayers while also supporting staff.”
They said,
“Our plans to bring NHS England back into the department will eliminate duplication, freeing up hundreds of millions of pounds for frontline care and better treatment for patients.
Referring to the investing in health and care, they added,
“We are investing an extra £26bn in health and care, and have already made progress on our mission to cut waiting lists – delivering an extra 2 million appointments seven months early and cutting the waiting list by 193,000 since July.”
What did NHS trusts say about job cuts and efficiency targets for 2025-26?
Several NHS trusts have revealed plans to cut hundreds of jobs to meet ‘challenging’ efficiency saving goals for 2025-26, as described by Mr Taylor.
Portsmouth and Isle of Wight NHS trusts intend to eliminate 798 whole-time equivalent posts, about 7% of their workforce, in a bid to save £39m, which accounts for nearly half of their £82m savings goal, according to the Health Service Journal.
In Bristol, the hospital trust aims to cut its workforce by 2%, which may result in over 300 job losses.
To avoid a £6.6bn budget overspend, NHS England has ordered all 215 trusts to save 5% of their budgets via “cost improvement programmes.”