latest health care news

09.11.15

Government to ‘rein in’ NHS with new guidance on hefty wages and payoffs

Chancellor George Osborne will issue guidance to NHS bodies on wages and press on with payoff caps after an investigation revealed that some healthcare bosses earned more than the prime minister in 2013-14.

The Daily Mail analysis, in association with the Taxpayers’ Alliance, looked at almost 6,000 responses to pinpoint the highest-earning public sector leaders in the country.

The second highest-earner in the whole public sector was an NHS chief who pocketed £850,000 last year on salaries and bonuses alone.

But the largest pay package – including wage rises, pension benefits and bonuses – was given to the chief executive of South Tees Hospitals NHS FT, Tricia Hart, who pocketed £1.26m in 2013.

Around the same time, South Tees was being investigated by Monitor due to poor performance and has racked up a deficit of £29m. In May 2014, Hart admitted that the fund’s deficit could spiral to £50m by the end of 2015-16.

But a spokesman for the trust said: “Professor Hart’s salary increase reflected her change from director of nursing to CEO. The increase in her pension pot was influenced by her securing a higher-paid role and her 40 years of service to the NHS.”

Yet several other NHS bosses were identified as earning nearly three times more than the prime minister, with five dentists earning a pay package of nearly £700,000 and a Newcastle upon Tyne Hospitals NHS FT director taking £236,000 home yearly.

A consider slice of these high earnings come from massive redundancy payoffs, pensions and bonuses – a part of which was found to be invested in private medical insurance.

Responding to the figures, the chancellor said: “Taxpayers’ money shouldn’t be used to pay for private medical insurance, gagging orders to cover up bad practice aren’t justified, and salaries above a certain level should be approved through a formal process and published to the public who foot the bill know what’s going on.

“I intend to issue new guidance sending a clear signal to public sector employers on pay and terms – setting out what I, and I suspect most taxpayers, see as unacceptable.

“What this shows is the scope that remains for savings at a time when budgets need to be trimmed. We’re determined to do all we can to rein in excess where we find it.

“So we will claw back redundancy payments for high earners who leave and then return to the public sector within a year – and change the law so that public sector payoffs are capped at £95,000 even for the highest-paid public servants.”

Consultation on the public sector exit payment cap only finished last week (3 November), but it is already understood to be going ahead.

Although the cap sparked some controversy amongst public sector agencies, massive redundancy bills have been a longstanding issue in the NHS.

The chief executive and general secretary of the Royal College of Nursing (RCN), Dr Peter Carter, has previously dubbed the £2bn spent on NHS payoffs a “slap in the face” – particularly as staff face wage rise caps until the end of this Parliament.

(Top image c. Richard Stonehouse, PA Wire)

Comments

Angus   11/11/2015 at 17:48

This is an excellent idea. Of course NHS executives should not earn more than the PM - the job of the PM is the most important in the country. However, this proposal does not even begin to cover the necessary ground. What about all the banks and other private companies? Surely none of their Chief Executives are more important than the PM either. In order to be fair, their pay should also be restricted so none of them earn more than the PM. It would be quite unjustified to attack the pay of public sector workers alone given that the chief executives of NHS Trusts make decision which literally affect the lives of hundreds of thousands of people. Why should chief execs of companies that make luxury, non-essential items like cameras and high end televisions earn any more than them?

Add your comment

national health executive tv

more videos >

featured articles

View all News

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 throu more > more last word articles >

health service focus

View all News

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 ... 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. 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... more >

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 wi... more >
read more blog posts from 'the scalpel' >