NHS faces `fat-cat' pay-off storm
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BARRIE CLEMENT
Labour Editor
Several senior National Health Service officials stand to receive up to pounds 200,000 each as part of "fat-cat" severance payments, now effectively banned in the City.
Five out of six regional chief executives are to enjoy the golden handshakes as part of their senior managers' contracts, which have yet to be abolished by the NHS executive.
The redundant officials, who earn around pounds 70,000 a year, are on individual agreements which means they will receive up to three years' salary when they leave the service.
The regional chief executives are losing their jobs as part of an extensive reorganisation of NHS Supplies, just five years after it was set up to prevent duplication of the purchasing function and to buy in bulk. The organisation, which oversees some pounds 2bn worth of expenditure, is being changed from a regionally-based structure to one managed on a national basis..
All six chief executives are expected to compete for one national job, although some insiders argue that the successful candidate may be worse off in the longer term than those forced out.
A spokesman for NHS Supplies said there were always costs when staffing was reduced.
The NHS Executive is said to be reviewing the practice of issuing three- year rolling contracts, which City institutions will no longer tolerate in publicly-listed companies.
In his report on top boardroom salaries, Sir Richard Greenbury counselled that such long-term agreements were unacceptable. Deals lasting up to one year should be the norm, he said.
The news emerges at a time when nurses have been offered a 2 per cent salary increase. Although there is provision for local top-upsNHS trusts have said only around 0.75 per cent will be available locally.Henry McLeish, Labour health spokesman, said : "The Health Service has been under permanent reform since 1989. Tory policies are costing the tax-payers a fortune."
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments