Consultancy Costs

Oral Answers to Questions — Health – in the House of Commons at 11:30 am on 27 November 2012.

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Photo of Graeme Morrice Graeme Morrice Labour, Livingston 11:30, 27 November 2012

How much the NHS spent on consultancy in (a) 2010-11 and (b) 2011-12.

Photo of Jeremy Hunt Jeremy Hunt The Secretary of State for Health

The amount spent by strategic health authorities, primary care trusts and NHS trusts on consultancy services in the financial years 2010-11 and 2011-12 was £291 million and £278 million respectively—a 39% fall in expenditure, compared to the last year of the previous Administration.

Photo of Graeme Morrice Graeme Morrice Labour, Livingston

In 2010 the former Secretary of State said he was

“staggered by the scale of the expenditure on management consultants”.

However, in the past year alone foundation trusts have increased their spend on consultancy by 25% and NHS trusts have increased their spend by 13%. Is the new Secretary of State just as staggered?

Photo of Jeremy Hunt Jeremy Hunt The Secretary of State for Health

With respect to the hon. Gentleman, a 39% fall in consultancy expenditure compared to the last year of the previous Administration is something that we are rather proud of. If he wants to know what the Health Secretary is directly responsible for, direct Department of Health expenditure on consultancy in the past year was £3 million. In the last year of the previous Government it was £108 million.

Photo of Andrew Bridgen Andrew Bridgen Conservative, North West Leicestershire

Has my right hon. Friend made any recent assessment of the total efficiency savings achieved in the NHS over the past two years under the Nicholson challenge?

Photo of Jeremy Hunt Jeremy Hunt The Secretary of State for Health

We are making good progress on the Nicholson challenge. This year we expect to save £5.8 billion under that important programme to improve efficiency in the NHS so that we can treat more people.

Photo of Andrew Gwynne Andrew Gwynne Shadow Minister (Health)

The Secretary of State cannot have it both ways. Is he aware that in the past year alone Monitor spent more than £9 million on NHS transition costs, with a staggering £5.6 million of that being squandered on management consultants? Is this not a further sign of a Government with their priorities all wrong, wasting precious public money on management consultants to push through a reorganisation that nobody wanted, while they are handing out P45s to our nurses?

Photo of Jeremy Hunt Jeremy Hunt The Secretary of State for Health

If the hon. Gentleman is shocked at consultancy spend in the NHS today, he will be even more shocked to know that it was nearly double when his party was in power.