Nearly £2 billion has been spent on redundancy pay-outs for NHS managers since 2010, figures reveal.
Department of Health accounts show that since the coalition government began to reshape the NHS in 2010, £1.95 billion has been spent on exit packages, with £141 million paid over the past 12 months alone.
Around 50,000 health bosses have been made redundant since former health minister Andrew Lansley initiated the ‘Lansley reforms’ – a scheme that intended to save money by restructuring the NHS.
Of these, over 3,000 people were offered more than £100,000 in redundancy money, and almost 500 were given over £200,000. This has caused outrage amongst campaigners who say such spending is not acceptable at a time when the NHS is facing cash shortages.
Further criticism has been made of the fact that £92 million was awarded to staff who were then rehired by the NHS, a process which has been described as a taxpayer-funded revolving door.
John O’Connell, chief executive of the Taxpayer’s Alliance, said: “Not a day goes by without a call for more money to be put into the NHS, so the sheer scale and number of these redundancy payments will be hard for taxpayers to swallow.”
“What’s more, many of the staff who have been let go have simply been re-hired, meaning we have nothing more than a taxpayer-funded merry-go-round. When redundancies are made, it’s important that there is a proper plan in place to ensure that the initial outlay will yield big savings for taxpayers in the long run.”
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