Tulip Siddiq – 2016 Parliamentary Question to the Department of Health

The below Parliamentary question was asked by Tulip Siddiq on 2016-09-05.

To ask the Secretary of State for Health, how many people who received redundancy payments from the NHS in 2015-16 were subsequently re-employed by the NHS on a (a) consultancy and (b) permanent basis; and what the cost to the NHS was of those redundancy repayments.

Mr Philip Dunne

The number of compulsory redundancies in 2015-16 was 1,944.

The number of staff made redundant and then re-employed is not currently available.

In May 2015 the Government announced that it intended to take forward its manifesto commitment to end six-figure exit payments for public sector workers, including the National Health Service. The Enterprise Act containing provisions for the £95,000 public sector exit payment cap received Royal Assent in May 2016 and will come into force later this year.

Further legislation is being taken forward to allow for the recovery of exit payments from all high earning public sector workers who return to any part of the public sector within 12 months of leaving.

The Government’s changes to the NHS mean a huge net gain for the taxpayer. The Department published a written ministerial statement on 21 July 2015: Column 90WS NHS Modernisation setting out the costs and benefits of NHS modernisation. “The Department of Health also originally forecast that between 2010-11 and 2014-15 the reforms would save the NHS £4.5 billion in lower administration costs, as well as a further £1.5 billion a year thereafter. Actual savings were far greater, in cash terms at £6.9 billion over this period, including £2 billion in 2014-15—and in 2010-11 prices comparable to the impact assessment £6.5 billion, including £1.8 billion in 2014-15. This means the Government have successfully achieved their aim to reduce NHS bureaucracy costs by a third”.