§ Mr. MilburnTo ask the Secretary of State for Health (1) what have been the costs of redundancy payments to staff in each of the last five years;
(2) if she will list the number of redundancies among NHS staff (a) by grade and (b) by reason for each of the last five years.
§ Mr. MaloneRedundancy in the national health service is not a new phenomenon. Compensation for loss of office was introduced in 1948 as part of the establishment of the service. NHS redundancies in recent years have resulted from re-organisation and mergers at local level as part of continuing improvements in patient services. In 1989–90, gross redundancy payments to staff by regional health authorities were £516,000, by district health authorities £8,975,000 and by special health authorities £243,000 In 1990–91, gross redundancy payments by regional health authorities were £948,000, by district health authorities £10,722,000 and by special health authorities £68,000.
The increase in expenditure in this and subsequent years by regional health authorities is largely accounted for by restructuring and contraction while the largest single factor in redundancies in district health authorities during this and subsequent years is the reorganisation of mental health services in connection with care in the community, involving the closure of psychiatric hospitals. In 1991–92, gross redundancy payments by regional health authorities were £2,720,000, by district health authorities £25,875,000, by special health authorities £481,000 and by NHS trusts £3,675,000. Increases in expenditure in this and subsequent years by special health authorities and trusts result largely from reorganisation and mergers at local level and, in London, especially from the implementation of the report of Professor Sir Bernard Tomlinson. In 1992–93, gross redundancy payments by regional health authorities were £3,237,000, by district health authorities £31,871,000, by special health authorities £1,128,000 and by NHS trusts £14,546,000.
Reasons given by trusts with the largest expenditure on redundancy payments include particularly the implementation of reviews of skill mix and ancillary staff, together with increased concentration on patient services and contracting out of non-clinical services. Provisional figures for 1993–94 are £11,486,000 for regional health authorities, £31,971,000 for district health authorities, £1,185,000 for special health authorities and £49,122,000 for NHS trusts.
Management restructuring caused by the reduction in the size and number of regional health authorities, leading to their eventual abolition in 1996, has added to redundancy costs for 1993–94, as have the merger of some district health authorities and changes in working practices.
Information on the number of redundancies by grade and cause is not available routinely in the form suggested. However, some information is available about redundancies in particular staff groups and I will write about this to the hon. Member.