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£1.8bn Wasted On NHS Redundancy Payments - Yorkshire Hub

£1.8bn Wasted On NHS Redundancy Payments

More than 5,500 people made redundant since 2010 are re-employed in the NHS, despite some receiving payments of over £200,000.

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The Department of Health has been accused of “spending money like confetti” on NHS redundancy payments.

Figures reveal redundancy payoffs amounted to nearly £2bn during the Government’s restructuring programme over the last five years.

More than 5,500 people who were made redundant since 2010 have been re-employed elsewhere in the NHS, despite some receiving severance payments of more than £200,000.

Since the shake-up, redundancies have cost £1.8bn for more than 44,000 lay-offs and in 2014-15 alone some £220m was spent on payoffs for staff.

Shadow health secretary Andy Burnham said: “Today the figures hit a new high – £1.8bn wasted.”

“And what are doctors to make of this? No wonder morale in the NHS is at rock bottom.”

He added: “This was a reorganisation that didn’t need to happen.

“They’ve thrown money at redundancies, given people payoff cheques like confetti at the NHS at a time when we’re not doing right by the staff of the National Health Service.”

The Government has pledged to cap public sector redundancy payments at £95,000 – but the figures show, in the last five years, over 3,000 staff received more than £100,000.

Of those, 475 received amounts above £200,000. All this came while nurses were experiencing either a pay freeze or a below inflation pay cap of 1%.

The Government argues that the controversial restructuring has saved more money than expected and helped reduce bureaucracy by a third, allowing them to employ more frontline staff.

A Department of Health Spokesman said: “New figures this week actually showed that our changes saved far more than expected at £6.9bn, and cost less than originally estimated.

“Labour oppose these reforms, but won’t say how they would afford the 9,000 more doctors and 8,500 more nurses that the NHS can employ as a result.”

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