Workforce and Training

09.11.18

Trust pays out £5.7m to lay off 299 staff as mergers see spike in compulsory redundancy pay-outs

One NHS trust paid out £5.7m to get rid of 299 NHS workers as new figures show that the amount trusts spent on compulsory redundancies increased by 8% last year.

Data from trust’s annual accounts show that NHS providers spend a combined total of £46.7m on severance payments in 2017-18, with Staffordshire and Stoke-on-Trent Partnership FT (SSOTP) the highest spenders of all the trusts across the last two years.

In 2017-18 alone, Essex Partnership University FT (EPU) spent £4.9m on redundancy payments, which is 1.45% of its annual budget.

These two trusts sit at the top of the rankings for redundancy pay-outs after both were recently involved in a merger between NHS trusts.

SSOTP made 159 employees redundant in 2017-18, and 140 workers the year before, before the trust was dissolved in May following a merger with South Staffordshire and Shropshire Healthcare Foundation Trust, who also spent more than £1m on redundancies.

The spokesperson for the newly formed trust, now known as Midlands Partnership NHS FT, said that the old trust “undertook a number of service redesigns” during the two-year period, and that redundancies were made in line with personal terms and conditions.

“Whilst all redundancy payments were recorded in the trust’s end of year accounts, almost £3m of these payments were met by commissioners.”

Speaking to Stoke-on-Trent Live, Ian Syme, the Healthwatch co-ordinator for North Staffordshire, criticised what he called “fat-cat” payments.

He said: “There seems to be an excessive amount paid out, especially as there is talk of one employee receiving £354,000.

“A lot of these people will have been ordinary workers, but the larger pay-out’s send the wrong signs to the general population because they are fat-cat pay-out’s that would you expect from banks or in London and not the NHS.”

EPU FT was formed following merger between South Essex Partnership FT and North Essex Partnership FT, and spent a total of £4.9m on compulsory redundancies.

Eleven of its staff were paid more than £100,000 for redundancies, and 24 were paid between £50,000 and £100,000, all of which the trust attributed to its merger.

The third highest spend was Mersey Care FT, who also acquired two other providers in the last two years.

Overall, the £46.7m spent on compulsory redundancies was up from £43.3m from the year before.

Image credit - BackyardProduction

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

Comments

There are no comments. Why not be the first?

Add your comment

national health executive tv

more videos >

latest healthcare news

NHS England commits £30m to join up HR and staff rostering systems

09/09/2020NHS England commits £30m to join up HR and staff rostering systems

As NHS England looks to support new ways of working, it has launched a £30m contract tender for HR and staff rostering systems, seeking sup... more >
Gender equality in NHS leadership requires further progress

09/09/2020Gender equality in NHS leadership requires further progress

New research carried out by the University of Exeter, on behalf of NHS Confederation, has shown that more progress is still needed to achieve gen... more >
NHS Trust set for big savings in shift to digital patient letters

09/09/2020NHS Trust set for big savings in shift to digital patient letters

Up and down the country, NHS trusts are finding new and innovative ways to leverage the power of digital technologies. In Bradford, paper appoint... more >

editor's comment

26/06/2020Adapting and Innovating

Matt Roberts, National Health Executive Editorial Lead. NHE May/June 2020 Edition We’ve been through so much as a health sector and a society in recent months with coronavirus and nothing can take away from the loss and difficulties that we’ve faced but it vital we also don’t disregard the amazing efforts we’v... read more >

last word

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad: ‘We all have a role to play in getting innovations quicker’

Haseeb Ahmad, president of the Association of the British Pharmaceutical Industry (ABPI), sits down with National Health Executive as part of our Last Word Q&A series. Would you talk us th... more > more last word articles >

the scalpel's daily blog

Covid-19 can signal a new deal with the public on health

28/08/2020Covid-19 can signal a new deal with the public on health

Danny Mortimer, Chief Executive, NHS Employers & Deputy Chief Executive, NHS Confederation The common enemy of coronavirus united the public side by side with the NHS in a way that many had not seen in their lifetimes and for others evoked war-time memories. It was an image of defiance personified by the unforgettable N... more >
read more blog posts from 'the scalpel' >

comment

NHS England dementia director prescribes rugby for mental health and dementia patients

23/09/2019NHS England dementia director prescribes rugby for mental health and dementia patients

Reason to celebrate as NHS says watching rugby can be good for your mental health and wellbeing. As the best rugby players in the world repr... more >
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 >

interviews

Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

24/10/2019Matt Hancock says GP recruitment is on the rise to support ‘bedrock of the NHS’

Today, speaking at the Royal College of General Practitioners (RCGP) annual conference, Matt Hancock highlighted what he believes to be the three... more >
NHS dreams come true for Teesside domestic

17/09/2019NHS dreams come true for Teesside domestic

Over 20 years ago, a Teesside hospital cleaner put down her mop and took steps towards her midwifery dreams. Lisa Payne has been delivering ... more >
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 >

health service focus

View all News