English hospitals could axe over 100,000 jobs following reorganization and cost-cutting measures ordered by Health Secretary Wes Streeting and NHS England’s new chief executive, Sir Jim Mackey.
NHS leaders have requested Treasury funding as trusts lack money to cover redundancy costs potentially exceeding £2bn. Mackey has instructed the 215 health care trusts to slash corporate function costs by 50% by year-end.
The NHS Confederation warns trusts may need to reduce their workforce by 3-11%, potentially leading to between 41,100 and 150,700 job losses across their 1.37 million employees.
Matthew Taylor, NHS Confederation chief executive, called the required savings “staggering” and urged creation of a “national redundancy fund,” warning that without it, any government savings could be “completely wiped out.”
NHS England itself faces major cuts, with roughly half its 15,300 staff expected to lose jobs when merged with the Department of Health. Another 12,500 positions could be eliminated from regional oversight bodies.
Health experts caution against excessive cuts. Sarah Woolnough of the King’s Fund noted the UK already spends just 1.9% of its health budget on administration the sixth lowest among 19 comparable countries. Thea Stein from the Nuffield Trust warned that corporate staff include specialists vital for improving efficiency.
Several trusts have already announced job cuts, including nearly 800 positions in Portsmouth and Isle of Wight and around 300 in Bristol hospitals, as NHS England has ordered all trusts to save 5% of their budget this year.
For more business updates, visit London Pulse News.
