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NHS redundancy costs 'to be £617m above expectations'

NHS redundancy costs 'to be £617m above expectations'

The NHS is set to outlay in excess of £600 million more on redundancy payments than it originally planned during 2011-12, new figures have revealed.

According to data published by the Treasury today (February 10th), the Department of Health's spending on job loss costs caused by the organisation's restructuring plans will now include £617 million extra.

Throughout 2010-11, the NHS granted some £195 million in redundancy payments under the justification of being part of its modernisation process and the government has now revealed their initial expectations for the coming year were far below the reality.

Andy Burnham, shadow health secretary, labelled these figures "eye-watering" and said they are a clear indication that the restructuring programme's costs are "spiralling out of control".

"Some of these pay-offs have been made to people who may end up being re-employed by [health secretary Andrew] Lansley's new bodies," he added. 

This comes after a report by the National Audit Office questioned the Ministry of Defence's decision to cut 54,000 jobs all at once.

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Posted by Chris Stevenson