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NHS: Redundancy

Health written question – answered on 29th November 2011.

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Photo of Valerie Vaz Valerie Vaz Labour, Walsall South

To ask the Secretary of State for Health what estimate he has made of the cost to the public purse of redundancies of primary care trust and strategic health authority staff in the next financial year.

Photo of Simon Burns Simon Burns The Minister of State, Department of Health

The impact assessment, published alongside the Health and Social Care Bill, estimated that the redundancies resulting from the modernisation will cost £810 million. The estimate for total redundancy costs in primary care trusts is £634 million, and the estimate for strategic health authorities is £84 million.

This upfront cost will result in a £1.5 billion saving per year by 2014-15, which is a one-third reduction in the administrative spending across the system. The upfront costs of the modernisation will be more than recouped from the cost-savings by the end of 2012-13.

The impact assessment is available at:

www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsLegislation/DH_123583

A copy has been placed in the Library.

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