The average NHS employee being made redundant as a result of attempts to strip out management costs is on a £32,000 salary and can expect a £48,000 payout, the impact assessment to yesterday’s bill reveals.
The figures are based on the estimate there will be 20,900 redundancies across strategic health authorities, primary care trusts, arm’s length bodies and the Department of Health, amounting to a £1bn redundancy bill.
Using these figures, the mean average payout will be £48,000. As payments are normally one and a half times someone’s salary, the average person made redundant will be earning £32,000.
The government has repeatedly stressed that abolishing SHAs and PCTs is necessary to reduce administration costs and cut the number of well paid managers.
However, the average person falling foul of the changes is earning significantly less than the average manager’s salary of £44,700 or the average senior manager’s annual £59,400.
Using the same analysis, the average payout for primary care trust and strategic health authority employees made redundant as a result of NHS reforms will be slightly higher, at £55,000.
The impact assessment estimates that 60 per cent of SHA and commissioning PCT staff will transfer to new organisations such as consortia and the NHS Commissioning Board, while 18,400 employees will be made redundant.
He added: “To some extent some people will find it reassuring…But it’s still a lot of people… A lot of lives [are being] affected by this.”
The impact assessment also estimates that at least 2,500 people will be made redundant from arm’s length bodies and the Department of Health.
A DH spokeswoman said the 1,400 people being lost from the department would be taken from the following directorates:
- Connecting for Health
- Chief nursing officer’s office
- NHS finance performance and operations
- NHS medical director’s office
- NHS chief information officer’s office
- NHS chief executive’s office
The spokeswoman also said no clinicians were included in the 12,500 PCT staff being made redundant.
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Redundancy payouts to average £48,000