Government planning national NHS 'resignation scheme'

A national resignation scheme which will lead to the loss of NHS jobs is being approved by ministers, it was revealed today.

NHS trusts across the country have been writing to staff offering them a lump sum pay-off under a "mutually agreed resignation scheme".

These schemes are designed to create vacancies which managers believe either do not need to be replaced or which can be filled by redeployment from jobs that themselves do not need to be replaced.

It is thought some compulsory redundancies could be prevented this way as the NHS tries to save billions of pounds and moves towards abolition of primary care trusts (PCTs), as set out in the Government's white paper.

Now, in a bid to ensure consistency across the service, a national scheme is being set up instead. NHS East of England chief executive, Sir Neil McKay, has overseen the deal.

In a letter to NHS managers, reported by the Health Service Journal (HSJ), he said: "I am aware that a number of NHS organisations have agreed mutually agreed resignation schemes (MARS) to help with management costs reductions.

"Although such schemes are not currently related to any impact of the white paper, I want to ensure we are as joined up as possible.

"We are therefore working with the NHS trade unions and NHS Employers to create a national scheme that would supersede any local arrangements (other than those developed by foundation trusts)."

According to the HSJ, the NHS deal will allow managers to receive up to a year's pay if they volunteer to leave the service.

This would equate to £97,478 for the highest paid manager under the Agenda for Change contract or £137,500 for the average PCT chief executive.

But it reported this agreement was worth only half that offered under Agenda for Change redundancy terms, of which the maximum payable sum was equivalent to two years' salary.

It is thought people who have expressed interest in their local scheme will be able to move to the national scheme unless they have already signed on the dotted line.

Staff will be told they have a very short period to agree to the scheme before it is withdrawn.

They will also be prevented from re-applying for jobs at local hospitals for a period of time, typically one or two years.

Managers in Partnership chief executive, Jon Restell, told HSJ that from what he had seen of the scheme it was "unlikely to prove attractive to many of our members" owing to poorer terms than those set out under Agenda for Change.

He said: "It is designed to let people who are not at risk of redundancy leave if they want to, freeing up jobs for people who might be at risk but want to stay."

Health Secretary Andrew Lansley has told NHS trusts to cut management costs by 45% over the next few years.

Karen Jennings, head of health at the union Unison, said: "This scheme shouldn't apply to potential cuts associated with the coalition Government's White Paper.

"It is related to reducing management costs to deliver efficiency savings.

"Nevertheless, it is unlikely to create a stampede."

A spokesman for the Department of Health said: "The Department has worked together with the NHS trade unions and NHS Employers to create a nationally consistent, voluntary resignation scheme.

"This will help provide SHAs and PCTs with an additional way of maintaining a stable and flexible workforce, given the requirement for them to significantly reduce management costs.

"It is ultimately for organisations to decide locally whether to implement such a scheme."