§ Mr. Nealeasked the Secretary of State for Social Services if he will publish arrangements for the pay and conditions of service of general managers in the National Health Service to replace interim arrangements now in force.
§ Mr. FowlerI shall be issuing a circular next week to health authorities setting out new arrangements for general managers in England. Copies of the circular will be placed in the Library of the House.
The appointment of general managers was recommended in 1983 by the Griffiths inquiry into the management of the National Health Service. All regional and district general managers and the great majority of unit general managers have now been appointed. Their job is to improve services to patients by streamlining decision-taking and increasing efficiency.
General managers are personally accountable for managerial performance and for the achievement of national, regional and local policies and objectives. Their role is entirely new to the National Health Service. A high level of performance is expected from them. The existing terms and conditions of service for National Health Service staff are not appropriate to these posts and I am therefore introducing new arrangements.
The arrangements include important new features— notably the introduction of rolling short-term contracts in place of the security of tenure which normally applies in the Health Service. It will be a condition of eligibility for the new arrangements, including the rates of pay, that general managers should give up any contractural rights relating to their previous National Health Service appointments. The renewal of all general manager appointments will be on the new basis.
The new pay structure is intended to recognise the commitment to a performance-related contract which is 320W now expected of general managers and the loss of security of tenure. It provides for the general management function at unit, district and regional level in nine different grades in place of the present structure of well over 50 grades. There are no incremental scales in the new structure. At a later date a scheme of performance-related pay will be introduced which will reward those general managers whose performance is of a sufficiently high level. Performance will be assessed in relation to pre-established objectives and targets.
The new grading structure and pay rates replace, as previously promised, interim arrangements which have been in force since 1984 and will be effective from 1 February 1986. The cost of introducing the new arrangements will be met within health authorities' existing management cost limits.
Grading criteria Grade Grade rate Teaching or non-teaching Revenue £ million £ Region RGM 33,200 District Teaching 45 or more DGM 1 31,600 Non-teaching 60 or more Teaching 45 or less DGM 2 30,200 Non-teaching 30 to 60 Non-teaching 30 or less DGM 3 28,800 Unit Teaching 20 or more UGM 1 26,400 Teaching 10 to 20 UGM 2 24,100 Non-teaching 15 or more Teaching 5 to 10 UGM 3 21,700 Non-teaching 10 to 15 Teaching 5 or less UGM 4 18,900 Non-teaching 3 to 10 Non-teaching 3 or less UGM 5 15,600 Note:
The grade rate for district and unit posts has been based on the size of their revenue and the presence or absence of teaching responsibilities. In addition other local factors can have a significant effect on the weight of each post. To reflect these differences in job weight, the grade rate may be varied at the discretion of the Authority concerned, subject to regional and central approval.