§ Mr. Alfred Morristhe Secretary of State for Social Services what is the cost to date of the redundancy scheme for National Health Service administrators; how many have left the National Health Service under this scheme; and what were the scheme's financial and numerical targets.
§ Mr. Kenneth Clarke[pursuant to his reply, 2 March 1984, c. 386]: I assume that the right hon. Member has in mind the scheme for premature retirement that was introduced in 1981 in the run up to the 1982 NHS restructuring. The scheme applies to all NHS staff, not only administrators.
To the latest available date some 2,600 staff had been granted premature retirement under the scheme at a total cost of £45 million. Of this some £ 12.5 million represented compensation payments — enhanced benefits or early pension. The remainder represented the earned superannuation rights of the individuals concerned.
The premature retirement scheme was introduced as one of the means by which health authorities could achieve organisational change and savings. Although preliminary and tentative estimates were made of the numbers and costs that might be involved, it was not possible or sensible 463W to set financial or numerical targets. An estimated saving of £64 million in management costs between 1979–80 and 1982–83 can be largely attributed to the 1982 restructuring.