NHS struggle with rate cap for temporary staff

The NHS continues to face challenges with enforcing hourly pay caps for temporary staff, with 85% of core shifts and 56% of unsocial shifts exceeding the recommended levels, according to research.

Liaison, the organisation which provides financial and workforce solutions to two-thirds of the NHS, conducted the analysis into the effectiveness of the second phase of rate caps introduced in February this year to limit how much NHS trusts can pay per hour for all types of temporary staff.

According to Liaison’s sample of 56 trusts, NHS trusts across England overspent by an estimated £26.6m on temporary staff in the nine weeks from 1 February to 31 March this year. It has proposed that If trusts could achieve even a 70% compliance with the third phase rate cap introduced on 1 April – set at 55% above the relevant national pay rates for substantive staff – they could save £172m per year: this would represent 20% of their annual bill for locums.

Andrew Armitage, Liaison’s Managing Director said: “Our analysis of the second phase of the caps illustrates that while we are seeing increased conformance from trusts, particularly during unsocial hours, there is still a long way to go to improve the core rates which account for 70% of locum hours.

“Although some of the figures are encouraging, trusts are clearly struggling with negotiating lower rates of pay for certain types of locum, particularly in regions where locums are in limited supply. Perhaps surprisingly, London-based trusts continue to pay lower rates for consultants, averaging £94.22 per hour, compared to trusts in the South West paying an average rate of £110 per hour. On 1 April, NHS Improvement set a capped hourly rate of £76.10 for a consultant, so there is a huge challenge ahead for trusts to close this gap.”  

The data for the Phase 2 Capped Rate Report are derived from Liaison’ direct engagement service, part of its TempRE offering that comprises a range of services helping trusts and boards control and reduce their reliance on staffing spending. Twenty-five per cent of all NHS trusts and boards in England and Wales use Liaison’s workforce services to help them to manage and reduce their temporary staffing costs.