§ Mr. Jim CunninghamTo ask the Secretary of State for Health how proposed efficiency gains will(a) fund pay increases and (b) benefit patients.
§ Mr. SackvilleIn 1995–96, the hospital and community health services will have the benefit of an increase in Government spending on revenue of 1.3 per cent. real terms, and of efficiency gains of at least 3 per cent., equivalent to a further £600 million. This combination of new money and efficiency gains will allow for service growth and reasonable staff pay rises.
Hospital and community health services will expand by around 4 per cent. in 1995–96, provided that pay rises are earned through increased efficiency. This will enable the health service to make further progress on waiting times, as well as tackling other challenges identified in the priorities and planning guidance for 1995–96, notably improvements in mental health services cancer services, and maternity care.