UK (Parliament Politics Magazine) – NHS shake-up may cost £1bn in redundancy payouts, with 20,000-30,000 jobs at risk after NHS England’s abolition, raising concerns for healthcare delivery.
As reported by The Guardian, the NHS’s most significant reorganization in a decade may cost £1bn in redundancy payouts. The decision to abolish NHS England last month is expected to lead to the elimination of 20,000 to 30,000 jobs.
The 42 integrated care boards and corporate services at NHS trusts will also face significant job reductions in the wake of this decision.
What did the Department of Health and Social Care accounts reveal about redundancy payouts?
A detailed Observer analysis of DHSC accounts shows that nearly £450m has been spent on redundancy payouts over the past five years for voluntary and compulsory departures.
The figures include 94 employees who received over £150,000 each during the year up to 31 March 2024. The DHSC reports that the average cost of exit packages for employees in 2024 was £48,840. With these figures, upcoming redundancies could total between £700m and £1.2bn.
What did Labour say about NHS redundancy payouts under Lansley?
The Labour party has long criticized the redundancy payouts under Tory health secretary Andrew Lansley during the 2012-13 reforms, describing it as a “colossal waste” of taxpayers’ money.
The reforms by the then-health secretary led to the creation of NHS England, which Labour has labelled the world’s largest quango, and is now being dissolved.
What did Streeting say about scrapping NHS England?
Health Secretary Wes Streeting has called the end of NHS England the “final nail in the coffin” of the 2012 reforms, claiming it could save up to £500m annually.
He will face questions from MPs on the parliamentary health select committee this Tuesday regarding his reforms.
What did Siva Anandaciva say about scrapping NHS England?
Siva Anandaciva, director of policy at the King’s Fund thinktank, has warned that dismantling NHS England could derail the development of the NHS’s new 10-year health plan. He stated, “It’s a huge distraction to keep reorganising the NHS.”
What did Mark Exworthy say about NHS England’s abolition?
Mark Exworthy, a professor of health policy and management at Birmingham University, pointed out that NHS England had redundant roles. He raised concerns about whether its dissolution would assist Labour’s health agenda.
Mr Exworthy said,
“It might be seen as a high-level reorganisation, well away from patient care, but it will have impacts down the line.”
What did the Nuffield Trust analysis say about NHS staffing cuts and reorganisation?
According to the Nuffield Trust, the proposed reductions in NHS central and support staffing will result in fewer full-time equivalent positions than in 2013.
Billy Palmer, a senior fellow in health policy at the Nuffield Trust, said that the reorganisation signals a “lighter touch” management of the NHS, but warned the government must protect essential roles.
He added, “You need to make sure there is regional support for local [NHS] organisations or there is a risk you could be left with a real void.”
What did the DHSC spokesperson say about NHS reforms?
A DHSC spokesperson stated,
“The figures claimed are based completely on speculation and not on fact. Our plans to bring the NHS back into the department will eliminate duplication, freeing up hundreds of millions of pounds for frontline care to deliver better treatment for patients.”
They added,
“We are investing an extra £26bn in health and care, and thanks to the reforms so far, we are already delivering on our mission to cut waiting lists – delivering an extra two million appointments and cutting the waiting list by 193,000 since July.”
Layla Moran’s views on the NHS dental crisis
Layla Moran, MP, chair of the Commons Health and Social Care Committee, commented in a statement,
“The state of Britain’s dental services has been known to be in crisis for several years.”
Ms Moran stated that despite a 2023 parliamentary inquiry into NHS dentistry, conditions “have not improved and appear to have worsened.”