Controversial Leicester NHS contract scrapped four years early

Moves to scrap a controversial £300m contract with NHS trusts in Leicestershire four years early have been welcomed by a trade union.

Interserve Plc, University Hospitals Leicester NHS Trust, Leicestershire Partnership NHS Trust and NHS Property Services announced yesterday that they were ending a seven-year contract for Interserve to manage all 550 NHS buildings and deliver catering, maintenance and support services for the trusts after three years.

When the contract was signed in March 2013, it was expected to save £100m. More than 2000 staff transferred from the NHS to Interserve.

GMB regional organiser, Colin Whyatt said: "This contract had been troubled from the start and has ruined people's lives.

“There is still a lot to be sorted out but good news Interserve has lost the contract. I hope the trust has learnt its lesson."

In August 2013 Interserve apologised after patients at Leicester Royal Infirmary were served meals up to three hours late.

The company asked for a top-up to its contract, though to be around £12m, in March 2015.

In June 2015 Interserve merged catering and cleaning services, with cleaners heating up patient’s meals, causing 100 people to lose jobs.

The university trust issued Interserve with a compliance notice, forcing them to reverse the changes, after complains about a decline in services.

In a joint statement, the trusts and Interserve said: “The original contracts were designed over five years ago and though they have delivered the intended savings, it has become apparent that the contracts are no longer appropriate to the needs of the trusts today.”

The contract will end on 30 April, with staff transferring back to the NHS under TUPE regulations.


There are no comments. Why not be the first?

Add your comment


national health executive tv

more videos >

latest news

View all News


Data: the oil of the digital age

07/11/2018Data: the oil of the digital age

Adam Steventon, director of data analytics at the Health Foundation, review... more >
The clinical voice at the heart of procurement

10/10/2018The clinical voice at the heart of procurement

Jo Gander, director of the Clinical and Product Assurance (CaPA) team, talk... 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 exemplars who were revealed at the same show 12 months earlier.  Jeremy Hunt also stated that by the end of 2018 – the 70th birthday... 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 beyond more > more last word articles >


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 s... more >

the scalpel's daily blog

More men please!

14/11/2018More men please!

Kirstie Stott, director of the Inspiring Leaders Network, flips the gender balance debate on its head and asks: why aren’t there more male nurses? As an advocate fo... more >
read more blog posts from 'the scalpel' >

healthcare events

events calendar


November 2018

mon tue wed thu fri sat sun
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2
3 4 5 6 7 8 9

featured articles

View all News