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Tuesday 22nd May 2018

£1m payouts for NHS executives

21st July 2007

150 NHS executives will benefit from "bumper" redundancy payouts after losing their jobs as part of a "cost-cutting" programme, reports the Telegraph.


Unions and pressure groups have severely criticised the decision.

Katherine Murphy, from the Patients Association, commented: "We have got trusts in deficit, patients waiting for treatment, others denied drugs, and people dying of health care-acquired infection as budgets are cut."

The government has cut the number of PCTs by 50% and reduced the amount of health authorities and ambulance trusts by two thirds in a cost-cutting drive.

In February 2007 they were forced to acknowledge the fact that the drive - intended to save £250 million per year - could potentially cost the NHS £325 million in redundancy payments.

The top earners at health authorities and trusts could be compensated with payouts of £1m as part of the redundancy deal.

Managers in Partnership, a NHS union, stated that "a good proportion" of the 150 chief executives were over 50, which enabled them to benefit from special payment deals.

Figures released under the Freedom of Information Act show that a chief executive who had a salary of £180,000 and had spent 30 years with the health service was given over £1 million.

David Johnson, chief executive of North and East Yorkshire and Northern Lincolnshire Strategic Health Authority, was given £900,000.

The Liberal Democrat health spokesman, Norman Lamb, said: "It really sticks in the craw of those working on the front line to see money wasted in this way."

The Department of Health said the health service would save money from the cost-cutting exercise and this would more than compensate for the redundancy payments.

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