Starmer scraps NHS England, the ‘world’s largest quango’

Ending NHS England will ‘reduce bureaucracy, make savings and empower NHS staff to deliver better care for patients’

  • Major reforms to empower NHS staff and put patients first
  • Changes will drive efficiency and empower staff to deliver better care as part of Prime Minister’s Plan for Change
  • Move will reduce complex bureaucracy and undo the damage caused by 2012 reorganisation

Reforms to reduce bureaucracy, make savings and empower NHS staff to deliver better care for patients have been set out today by the Prime Minister, Keir Starmer. 

NHS England will be brought back into the Department of Health and Social Care (DHSC) to put an end to the duplication resulting from 2 organisations doing the same job in a system currently holding staff back from delivering for patients.

By stripping back layers of red tape and bureaucracy, more resources will be put back into the front line rather than being spent on unnecessary admin.  

The reforms will reverse the 2012 top-down reorganisation of the NHS which created burdensome layers of bureaucracy without any clear lines of accountability. As Lord Darzi’s independent investigation into the state of the NHS found, the effects of this are still felt today and have left patients worse off under a convoluted and broken system.

The current system also penalises hardworking staff at NHS England and DHSC who desperately want to improve the lives of patients but who are being held back by the current overly bureaucratic and fragmented system.

Health and Social Care Secretary, Wes Streeting, said: “This is the final nail in the coffin of the disastrous 2012 reorganisation, which led to the longest waiting times, lowest patient satisfaction and most expensive NHS in history.

“When money is so tight, we cannot justify such a complex bureaucracy with 2 organisations doing the same jobs. We need more doers and fewer checkers, which is why I’m devolving resources and responsibilities to the NHS frontline.

“NHS staff are working flat out but the current system sets them up to fail. These changes will support the huge number of capable, innovative and committed people across the NHS to deliver for patients and taxpayers. 

“Just because reform is difficult does not mean it should not be done. This government will never duck the hard work of reform.

We will take on vested interests and change the status quo, so the NHS can once again be there for you when you need it.”

Sir James Mackey, who will be taking over as Transition CEO of NHS England, said: “We know that while unsettling for our staff, today’s announcement will bring welcome clarity as we focus on tackling the significant challenges ahead and delivering on the government’s priorities for patients.

“From managing the COVID pandemic, the biggest and most successful vaccine campaign which got the country back on its feet, to introducing the latest, most innovative new treatments for patients, NHS England has played a vital role in improving the nation’s health. I have always been exceptionally proud to work for the NHS – and our staff in NHS England have much to be proud of.

“But we now need to bring NHS England and DHSC together so we can deliver the biggest bang for our buck for patients, as we look to implement the 3 big shifts – analogue to digital, sickness to prevention and hospital to community – and build an NHS fit for the future.”

Incoming NHS England chair, Dr Penny Dash, said: “I am committed to working with Jim, the board and wider colleagues at NHS England to ensure we start 2025 to 2026 in the strongest possible position to support the wider NHS to deliver consistently high-quality care for patients and value for money for taxpayers.

“I will also be working closely with Alan Milburn to lead the work to bring together NHS England and DHSC to reduce duplication and streamline functions.”

Work will begin immediately to return many of NHS England’s current functions to DHSC. A longer-term programme of work will deliver the changes to bring NHS England back into the department, while maintaining a ‘laser-like focus’ on the government’s priorities to cut waiting times and responsibly manage finances.

It will also realise the untapped potential of the NHS as a single payer system, using its centralised model to procure cutting-edge technology more rapidly, get a better deal for taxpayers on procurement and work more closely with the life sciences sector to develop the treatments of the future.

The reforms to deliver a more efficient, leaner centre will also free up capacity and help deliver significant savings of hundreds of millions of pounds a year, which will be reinvested in frontline services to cut waiting times through the government’s Plan for Change.

The changes will crucially also give more power and autonomy to local leaders and systems – instead of weighing them down in increasing mountains of red tape, they will be given the tools and trust they need to deliver health services for the local communities they serve with more freedom to tailor provision to meet local needs.  

The number of people working in the centre has more than doubled since 2010, when the NHS delivered the shortest waiting times and highest patient satisfaction in its history. Today, the NHS delivers worse care for patients but is more expensive than ever, meaning that taxpayers are paying more but getting less.

Too much centralisation and over-supervision has led to a tangled bureaucracy, which focuses on compliance and box-ticking, rather than patient care, value for money and innovation. In one example, highlighted by Dame Patricia Hewitt’s 2023 review, one integrated care system received 97 ad-hoc requests in a month from DHSC and NHS England, in addition to the 6 key monthly, 11 weekly and 3 daily data returns.

The review also revealed the challenges caused by duplication – citing examples of tensions, wasted time and needless frictional costs generated by uncoordinated pursuit of organisational goals that do not take account of their wider effects. 

Substantial reform, not just short term investment, is needed to deliver the government’s Plan for Change mission to get the NHS back on its feet and fit for the future, and this announcement is one of a series of steps the government is taking to make the NHS more productive and resilient so that it can meet the needs of the population it cares for.

NHS England’s new leadership team, Sir Jim Mackey and Dr Penny Dash, will lead this transformation while re-asserting financial discipline and continuing to deliver on the government’s priority of cutting waiting times through the Plan for Change.

These reforms will provide the structure necessary to drive forward the 3 big shifts identified by government as crucial to building an NHS fit for the future – analogue to digital, sickness to prevention and hospital to community.

Since July, the government has already taken significant steps to get the NHS back on its feet, including bringing an end to the resident doctor strikes, delivering an extra 2 million appointments 7 months early and cutting waiting lists by 193,000 since July.

Commenting on the Prime Minister’s announcement that NHS England is to be abolished, UNISON general secretary Christina McAnea said: “Everyone wants more to be spent on frontline services so the sick and injured can be treated sooner.

“Delays and long waits for operations and appointments have left several million unable to work, with a knock-on effect on economic growth.

“More of a focus and greater investment in the entire NHS team of staff, not just nurses and doctors, would help turn around the fortunes of a floundering NHS.

“Put simply the health service needs thousands more staff and to be able to hold on to experienced employees. At the moment, it’s struggling to do that. Giving staff a decent pay rise would help no end.

“But this announcement will have left NHS England staff reeling. Just days ago they learned their numbers were to be slashed by half, now they discover their employer will cease to exist.

“The way the news of the axing has been handled is nothing short of shambolic. It could surely have been managed in a more sympathetic way.

“Thousands of expert staff will be left wondering what their future holds. Wherever possible, their valuable skills must be redeployed and used to the benefit of the reformed NHS and patients.

“Ministers have to reassure employees right across the NHS that there’s a robust plan to rejuvenate a flailing NHS and deliver for working people.”

Following Sir Keir Starmer’s announcement to scrap NHS England, a leading cybersecurity expert has warned the move could leave the health service dangerously exposed to cyberattacks.

While the proposed reforms aim to cut bureaucracy and streamline services, he warns that removing NHS England’s centralised cybersecurity infrastructure is “like a hospital suddenly removing its emergency department and expecting patients to fend for themselves.”

Graeme Stewart, head of public sector at Check Point Software, said, “While the Prime Minister’s sweeping reforms cover everything from cutting red tape to reining in bureaucracy, one critical area must not be left in the lurch: our cybersecurity defences. Scrapping NHS England’s centralised services is not just a bureaucratic shake-up; it’s like a hospital suddenly removing its emergency department and expecting patients to fend for themselves.

“At present, NHS England provides the backbone for our cyber defences, from a unified email service to specialised threat protection. Removing these central functions risks leaving individual NHS Trusts to fend off cyberattacks with a patchwork of under-resourced teams. As the adage goes, ‘a chain is only as strong as its weakest link,’ and our cyber chain is already under severe strain with attacks on the rise.

“Moreover, dismantling these central services could open the door for a surge of third-party suppliers to step in. While more suppliers might seem like a win for competition, it also fragments our defence and leaves us vulnerable; each new supplier is a potential weak link in our security armour.

“We need a robust, unified security system that acts like a digital fortress, not a hodgepodge of outsourced patches. In the midst of these broad reforms, let’s ensure the cyber element isn’t left out in the cold. Our digital defences must be retained or replaced with an equally robust solution; otherwise, we’re setting the stage for a cyber disaster.”

New protections for workers closer as MPs back Employment Rights Bill

A major step was taken towards resolving key issues in the labour market last night after MPs voted to approve the government’s Employment Rights Bill

Significant measures in the Bill include:

  • The right to guaranteed hours for zero hours workers.
  • Protection from unfair dismissal from day one in the job.
  • Sick pay for all workers, from the first day of absence
  • The right for unions to access workplaces to speak to workers.
  • The establishment of a state Fair Work Agency to bring together existing bodies to better enforce the law.

The common sense reforms take a step towards resolving key issues for many workers, such as being parked on zero hours contracts for months or years on end. Or workers being afraid to take a better job because currently they can be dismissed for no reason within the first two years.

Such steps take the UK closer to equivalent countries in the strength of its employment law.

They could also provide a £13 billion annual boost to the UK’s lacklustre economy.

After consultations with businesses, trade unions and the wider public at the end of last year, the government tabled a number of other notable changes when the Bill returned to parliament this week.

Here are some of the key ones:

Zero hours contracts

Agency workers will have to be offered guaranteed hours contracts reflecting their normal hours, based on a 12-week reference period. This closes a loophole that could have allowed employers to switch from employing zero hours workers directly to hiring them via an agency.

There is a provision that new rights to guaranteed hours, reasonable notice of a shift and payment for cancelled, moved and curtailed shifts can be changed if workers and an employer agree alternative arrangements in a collective agreement. This means arrangements can be tailored to suit particular workplaces.

Sick pay

The government has confirmed that workers will be entitled to receive minimum sick pay of 80 per cent of their normal wages or statutory sick pay, whichever is the lower. This largely affects workers who are not currently entitled to statutory sick pay. The government had modelled a rate as low as 60 per cent.

Union access

The right for a trade union to access a workplace to support workers and talk to them about joining has been extended to a digital right of access as well. This will be especially important where workers work outside an office and are better contacted by digital means such as email or intranet posts.

Unions have been given stronger rights to access workplaces when workers are seeking recognition. Employers will be barred from carrying unfair practices to undermine unions from the start of the process.

Trade union rights

Current law deliberately ties unions up in red tape, which gives employers great opportunities to challenge strike action in the courts on technicalities. This will reduce somewhat as the government reduces the amount of information unions must disclose to employers when they launch a strike ballot.

Meanwhile, notice for strike action will be cut from 14 days currently to ten days. And the mandate for taking strike action after a vote in favour doubled to 12 months.

Industrial action is a last resort for trade union members. After all, workers usually suffer a significant loss of income. But a vote for action can give real weight to union negotiations and kickstart talks when progress has stalled.

These changes mean some of the artificial barriers to action have been removed.

Work still to do

While the Employment Rights Bill will take important steps towards a fairer economy, there are further reforms required. These include:

  • Some workers could receive less sick pay under these changes than they currently receive. This should be remedied and a review conducted to improve the paltry headline rate of SSP.
  • A huge amount of detail will be set out in subsequent regulations laid by the government. It is crucial that new “initial periods of employment” during a worker’s first nine months in the job provide sufficient protection from unfair sacking, including a route to take a case to the employment tribunal. And that loopholes are not opened up stopping workers getting guaranteed hours contracts.
  • The Bill makes it easier for workers to gain recognition for their trade union. But leaves in place a law requiring a three-year gap between recognition attempts, benefiting union-busting employers. This gap should be significantly reduced.
  • The government will delay the repeal of a Tory measure that requires a 50 per cent turnout for a strike law to be valid until after it has introduced electronic balloting.
  • The government has pledged to reform current employment status rules that govern whether someone is self-employed, a worker with some rights, or an employee with full rights. An overhaul is needed to stop exploitative employers attempting to deny workers their protections.

The passage of the Employment Rights Bill represents another significant step forward for working people.

The recent amendments further strengthen government efforts to crack down on worker exploitation and strengthen their voice in the workplace. 

TUC: Work-related ill-health is costing the UK economy over £400 million a week

  • New analysis shows that number of days lost due to work-related ill-health has rocketed by a third since 2010 to 34 million days 
  • Work-related ill-health reduced economic output by £22bn in 2023
  • TUC says findings highlight the importance of driving up job quality in the UK and stronger rights at work ahead of Employment Rights Bill returning 

Work-related ill-health is costing the UK economy over £415 million a week, according to new TUC analysis published on Monday. 

The analysis of official statistics shows that the number of days lost due to health conditions – including stress, depression and anxiety – has shot up by a third since 2010. 

In 2023 to 2024 (the latest year for which figures are available) 34 million working days were lost to work-related ill-health – compared to 22 million in 2010. 

The TUC says the findings – which are published as the Employment Rights Bill returns to parliament – show the “urgent importance” of improving the quality of work in the UK. 

In 2022 to 2023 (the latest year for which figures are available) work-related ill-health is estimated to have reduced economic output by £21.6bn. 

Boom in insecure work 

The TUC says the rise in days lost to work-related ill health has coincided with a huge boom in insecure work. 

The union body estimates that over a similar period (2011-2023) the number of people in precarious employment also rocketed by a third to over 4 million. 

A separate report out this week from the Commission for Healthier Working Lives suggests that poor quality work can harm employee health. It states:

“Most health conditions develop outside work, but for a significant number of people, work itself is the cause. Persistent insecurity, workplace discrimination and extreme demands take a serious toll on health. In some cases, poor-quality work is even worse for health than being unemployed.” 

The TUC says driving up employment standards will help improve staff well-being, health and productivity. It will also ensure that more people with disabilities or health conditions can stay in work.  

This view was backed up by polling last autumn which revealed that:  

  • Three-quarters (75 per cent) of managers think that strengthened employment rights will improve employee health, compared to just 4 per cent who disagree  
  • Seven in 10 (74 per cent) believe that strengthening employment rights will improve workforce retention, compared to just 6 per cent who do not.   

Employment Rights Bill back in parliament 

The government’s Employment Rights Bill returned to parliament this week for its report stage. The Bill will deliver “common-sense reforms” which bring the UK closer to the European mainstream on workers’ rights, the union body says. 

The TUC says the legislation will help to deliver better quality work in every corner of the country by cracking down on insecure work and banning exploitative zero-hours contracts. 

TUC general secretary Paul Nowak said: ”Improving the quality of work in Britain is good for workers and our economy. Work related ill-health is costing us hundreds of millions each week – that’s billions of pounds down the drain every year. 

”That’s why the government’s Employment Rights Bill is so important. Cracking down on exploitative practices like zero-hours contracts and giving people more security will boost workers’ health, well-being and productivity. It will also help more people stay in work.  

“We need to turn the corner on Britain’s low-rights, low-pay economic model that has been tested to destruction over the last 14 years. Giving working people more control and predictability over their lives will help create a happier, healthier and more robust workforce.”