Commissioning

25.09.18

NHS trusts told to stop setting up controversial subsidiaries

NHS hospital trusts have been told to stop setting up private companies and transferring staff to them by NHS Improvement.

The regulator has ordered trusts to “pause any current plans to create new subsidiaries or change existing subsidiaries” whilst it consults a new regulatory approach in October, with new guidance issued once this consultation ends.

NHS trusts have used subsidiaries to employ staff such as cleaners and porters for several years, and around 35 trusts have already set up a “subco” and moved non-medical staff into them.

Shadow health secretary Jonathan Ashworth called the decision a “victory” for NHS trusts.

He said: “These companies undermine national pay and terms and conditions in the NHS and create a two-tier workforce.

“Potentially thousands of NHS staff would see their jobs effectively privatised and their terms and conditions put at risk,” he said.

Unions have criticised trusts using subsidiaries as damaging and leading to a “two-tier” NHS workforce where some staff in the same role are paid less.

Unite national officer for health, Colenzo Jarrett, said: “We regard this as a significant victory in Unite’s long-running campaign to stop the creation of such subsidiaries - and then to reverse them.

“We believe this is in the best interest of patient safety and our members who wish to remain employed by the NHS and not outsourced to an outfit where their pay and employment conditions could be seriously eroded.”

In July, the Wrightington, Wigan and Leigh foundation trust abandoned plans to move 900 personnel into a new private firm called WWL Solutions.

 Enjoying NHE? Subscribe here to receive our weekly news updates or click here to receive a copy of the magazine!

Image credit - MartinPrescott

Comments

There are no comments. Why not be the first?

Add your comment

 

national health executive tv

more videos >

latest healthcare news

HEE pledges greater support for doctors’ medical school transition

17/07/2019HEE pledges greater support for doctors’ medical school transition

Health Education England (HEE) has outlined its commitment to supporting doctors in the transition from medical school into training and working ... more >
NICE approves breast cancer drug combination on Cancer Drugs Fund

17/07/2019NICE approves breast cancer drug combination on Cancer Drugs Fund

The National Institute for Health and Care Excellence (NICE) has approved a new potentially life-extending drug combination for some people with ... more >
East Midlands Ambulance Service earns ‘Good’ rating from CQC

17/07/2019East Midlands Ambulance Service earns ‘Good’ rating from CQC

The Care Quality Commission (CQC) has awarded the East Midlands Ambulance Service NHS Trust a ‘Good’ rating, following an inspec... more >

editor's comment

25/09/2017A hotbed of innovation

This edition of NHE comes hot on the heels of this year’s NHS Expo which, once again, proved to be a huge success at Manchester Central. A number of announcements were made during the event, with the health secretary naming the second wave of NHS digital pioneers, or ‘fast followers’, which follow the initial global digital e... read more >

last word

Hard to be optimistic

Hard to be optimistic

Rachel Power, chief executive of the Patients Association, warns that we must be realistic about the very real effects of continued underfunding across the health service. It’s now bey... more > more last word articles >

the scalpel's daily blog

Urology nurses are leading the way in adoption of prostate cancer biopsy technique

11/07/2019Urology nurses are leading the way in adoption of prostate cancer biopsy technique

Jonah Rusere, Advanced Nurse Practitioner for South East London Accountable Cancer Network, outlines an opportunity for urology nurses to make a difference to prostate cancer pathways. What is TRexit and why is it great news for prostate cancer patients all over the country? Let me explain. TRexit is the name given to a national... more >
read more blog posts from 'the scalpel' >

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Being on the receiving end of some “thanks” can make communit... more >
Nurses named as least-appreciated public sector workers

13/06/2019Nurses named as least-appreciated public sector workers

Nurses have been named as the most under-appreciated public sector professionals as new research reveals how shockingly under-vauled our NHS, edu... more >
Creating the Cardigan integrated care centre

10/06/2019Creating the Cardigan integrated care centre

Peter Skitt, county director and commissioner for Ceredigion Hywel Dda University Health Board, looks ahead to the new integrated care centre bei... more >
Helpforce to launch training programmes for NHS volunteers

10/06/2019Helpforce to launch training programmes for NHS volunteers

Kay Fawcett OBE, clinical advisor and education lead at Helpforce, and Lynn Twinn, talent development consultant, outline the new national traini... more >

interviews

How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

24/10/2018How can winter pressures be dealt with? Introduce a National Social Care Service, RCP president suggests

A dedicated national social care service could be a potential solution to surging demand burdening acute health providers over the winter months,... more >
RCP president on new Liverpool college building: ‘This will be a hub for clinicians in the north’

24/10/2018RCP president on new Liverpool college building: ‘This will be a hub for clinicians in the north’

The president of the Royal College of Physicians (RCP) has told NHE that the college’s new headquarters based in Liverpool will become a hu... more >
Duncan Selbie: A step on the journey to population health

24/01/2018Duncan Selbie: A step on the journey to population health

The NHS plays a part in the country’s wellness – but it’s far from being all that matters. Duncan Selbie, chief executive of Pu... more >
Cutting through the fake news

22/11/2017Cutting through the fake news

In an era of so-called ‘fake news’ growing alongside a renewed focus on reducing stigma around mental health, Paul Farmer, chief exec... more >

health service focus

View all News