Lib Dems call for National Audit Office investigation into NHS redundancies plan after unfunded £1bn cost revealed

EMBARGO: Immediate Release

The Liberal Democrats have written to National Audit Office chief Gareth Davies requesting that an investigation is launched into the Government’s plans to reduce Integrated Care Board running costs by 50%. The Times reported over the weekend would cost £600 million - £1 billion in unfunded redundancy payments.

Lib Dem Health and Social Care spokesperson Helen Morgan has also written to the Public Accounts Committee requesting that they investigate the Government’s plans, which could force substantial cuts to frontline services.

It comes after the Times reported that no money has been set aside to cover the cost of the thousands of redundancies that are set to occur following the Government’s reorganisation of the NHS. The Times said that the cost of making the 12,500 people redundant in order to cut ICB running costs in half is estimated to cost between £600 million and £1 billion. NHS figures have warned this could drain funds intended for patient care, and put safety at risk.

Some ICBs are now refusing to go ahead with the restructuring with others considering paying for job losses out of their existing budgets. The paper reported that it could mean any additional funding needed to cover the cost of redundancies may be delayed until April next year.

In her letter to the NAO, the Lib Dem Health and Social Care spokesperson said that Ministers’ plans needed to be investigated as the scale and speed of the changes were “exceptional” and gave rise to “serious concerns” about governance, value for money, legality and operational risk in the absence of formal scrutiny and safeguards.

The letter also noted that the Government had carried out no impact assessment on the cutting of ICB running costs, with the changes initiated without legislation or democratic mandate and no Treasury-led national redundancy scheme. 

Liberal Democrat Health and Social Care spokesperson, Helen Morgan MP said:

“The Government’s planned NHS reorganisation has been rushed through at a speed Usain Bolt would be proud of. It appears no one has stopped and had a think about how they will actually enact these changes, and if they expect frontline services to pick up the tab.

“Ministers have provided no impact assessment, subjected themselves to minimal Parliamentary scrutiny, and now risk punching a £1 billion blackhole into NHS budgets, threatening vital services and patient safety.

“The Conservative Party brought our NHS to its knees through their shameful neglect but this Labour government’s approach feels fundamentally unserious, aimed at appeasing a Treasury cost cutting drive and not improving patient care. 

“What we have been left with is a mess from top to bottom, with no real planning going into how these redundancies will be forced through without harming patients and shedding desperately needed money from frontline services. It is time the NAO and PAC investigated this rushed job and forced the Government to face real scrutiny rather than let them freelance without thought for the price patients will pay.”

ENDS

Notes to Editors:

The reporting by the Times can be found here.

Helen Morgan’s letters to the NAO and PAC can be found here and here.