Millions wasted outsourcing staff to private companies


In a bid to cut VAT payments and pay and pension costs, NHS trusts across England are spending millions of pounds outsourcing staff to new arms-length private companies, research by public services union UNISON reveals.


Using a Freedom of Information (FoI) request, UNISON found that NHS trusts are spending huge amounts of money on consultants who advise the trusts on the setting up of wholly owned subsidiaries, to which staff are then outsourced.


According to UNISON, this system allows NHS trusts to reduce their VAT payments, and cut the pay and pensions for any new staff recruited. The health workers that are being transferred tend to be the lowest paid within the NHS, such as porters and cleaners.


Twenty-two out of 31 NHS trusts approached by UNISON complied with the FoI request, and the amount spent by just 15 of them is already in excess of £3.2 million. Topping the list of high spenders is Clatterbridge Cancer Centre in Birkenhead, which spent more than £661,000 establishing a wholly owned subsidiary.


The Royal Free London NHS Foundation Trust and Gloucestershire Hospitals Foundation Trust have both already spent a minimum of £400,000 setting up subsidiaries. 


Meanwhile, Airedale NHS Trust in Yorkshire spent an estimated £343,000 outsourcing staff.


To highlight how significant these sums are, UNISON has calculated that the £3 million outlaid to date on transferring staff could have paid the annual salary of around 200 extra hospital cleaners.

https://www.unison.org.uk/news/press-release/2018/04/nhs-trusts-spending-millions-outsourcing-staff-private-companies-says-unison