Monday 26 August 2013

Redundancy costs.


This is a Daily Telegraph article, which I’ve edited, dealing with the cost of making NHS managers redundant. There are a couple of points – I don’t think these figures for the last three years (£1.4 Billion) are up to date – I don’t think they fully reflect the enormous cost of shutting all the Primary care trusts.

The last paragraph says it all, really, a high proportion of those made redundant simply walk into similar jobs somewhere else in the NHS.

Failing to plan is expensive, allowing the managers to manage their own redundancies is even more expensive;

By Robert Watts

 25 Aug 2013

Nearly 1,000 health workers have received six-figure exit deals in the past year, with 157 managers and other senior staff receiving more than £200,000 — a 50 per cent rise on the previous year.

 

Some officials have received golden goodbyes of £600,000 as part of the Government’s ongoing restructuring of the NHS.

 

Campaigners said the figures provided further evidence that the coalition was wrong to protect the health service from the austerity programme imposed on almost all other areas of public spending.

 

Labour blamed the heavy redundancy costs on the “unnecessary reorganisation” of the NHS carried out by Andrew Lansley, the former health secretary.

 

The NHS executives who received the largest severance packages include Nicholas Hicks, the director of public health at Milton Keynes Primary Care Trust.

 

Mr Hick was handed redundancy pay of around £600,000 when he left the trust four months ago.

 

While in opposition David Cameron pledged that the Conservatives would impose “no more pointless and disruptive reorganisations” on health service.

 

Andy Burnham, the shadow health secretary, said: “Billions have been siphoned out of the NHS front-line to pay for an unnecessary re-structuring no-one voted for and David Cameron personally promised would not happen.

 

“At a time when the NHS needs every penny it can get, we have a Prime Minister handing out gold-plated, six-figure pay-offs to hundreds of managers and P45s to thousands of nurses.”

 

Details of the NHS’ spending on redundancy packages are laid bare in the Department of Health recently-published annual report.

 

NHS workers typically receive redundancy of one month per full year of service, with the amount usually capped at 24 months’ pay. However, executives sometimes manage to negotiate better deals.

 

Between April 2010 and the end of March 2013, the NHS spent a total of £1.4billion on redundancy payments for 32,089 staff. The average package is more than £43,000.

 

During 2012/13, 958 health officials received payoffs of more than £100,000 — up from 628 the year before.

 

Last year, the Telegraph revealed that Sir Neil McKay, the chief executive of the Midlands and the East strategic health authority, was able to take a £1.1million lump sum when his job was made redundant as part of the Government’s NHS reforms.

 

The eye-watering figure included a £465,000 redundancy cheque and a £549,000 tax-free lump sum from his £2.4million pension pot.

 

……However, a National Audit Office (NAO) report last month found that more one in five of NHS staff made redundant as part of the Government’s reforms had been re-employed by the health service.”

 

Neil Harris

(a don’t stop till you drop production)

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