Dismantling NHS England: Anticipated £1 Billion Cost in Redundancies and 2-Year Timeline
Wes Streeting announced plans to reduce the number of staff involved in central NHS operations by 50%, with many roles moving back to government control.
Cost of Redundancies
Health Secretary Wes Streeting estimated that around £1 billion could be needed for redundancy packages for NHS England staff. This estimation was discussed during a session with the Health and Social Care Select Committee regarding the dismantling of NHS England and its transition back under government control.
Streeting acknowledged the potential cost of redundancy packages, stating that the final numbers would be determined once the organization’s size and structure are finalized.
Jim Mackey, the transition CEO of NHS England, also mentioned ongoing discussions with the Treasury regarding management of redundancy costs.
Staff Reduction
Streeting emphasized the goal of reducing the central NHS workforce by half, aiming to cut back on the current size of around 19,000 employees. While the £1 billion estimate for redundancy costs may seem significant, Streeting highlighted the long-term savings that would result from these changes.
Two-Year Timeline
Streeting expressed empathy for the staff affected by these changes and recognized the challenges associated with the upcoming redundancies. He indicated that it could take up to two years to complete the closure of NHS England, involving the consolidation of teams and workforce reduction.
Efficiency Objectives
The restructuring is aimed at reducing waste, inefficiency, and duplication within the NHS system. Streeting emphasized the need for clearer decision-making and channeling funds into frontline services by eliminating layers of bureaucracy.
Additionally, Streeting pledged to reduce the number of quangos attached to his department during his tenure as secretary of state.
