Economics

NHS England Cuts Agency Staff Spending by Nearly £1 Billion

In the 2024–25 financial year, NHS England reduced its expenditure on agency staff by almost £1 billion compared to the previous year, aligning with Health Secretary Wes Streeting’s goal to cut agency costs by 30%. Previously, the NHS had been spending approximately £3 billion annually on agency staff due to shortages of permanent workers. To further address this issue, proposed reforms include banning NHS trusts from using agency staff for lower-tier roles such as healthcare assistants and domestic support workers, as well as preventing NHS employees from resigning and then rejoining through agencies at higher pay rates. These measures aim to reinvest savings into frontline services, reduce waiting times, and ensure fair pay for permanent staff.

The Royal College of Nursing (RCN) has previously highlighted that the money spent on agency staff could have been used to hire over 31,000 permanent nurses, emphasizing the need for sustainable staffing solutions within the NHS. 

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