Tag Archive: pay


Gordon Brown has said overpaid public sector workers will be “named and shamed” in efforts to deliver more value for money in public services. Ahead of the pre-Budget report, the PM said “efficiency savings” would help to save £12bn over four years – £3bn more than planned in the Budget. Crime maps and online school reports will be used to cut overheads as Labour tries to halve the Budget deficit.

The Conservatives say the government is not being straight on the cuts needed. The government has delayed its planned comprehensive spending review until after a general election. In the pre-Budget report, Mr Darling is expected to confirm annual borrowing will top £175bn – which the government has promised to halve within four years. In his speech in central London, Mr Brown said ministers had identified £3bn in additional efficiency savings since the Budget in April.

Of that, £1.3bn over four years would be achieved by streamlining central government, he said, indicating that certain programmes would have to be delayed or abandoned. We need to do what households up and down the country do to prioritise the necessities and postpone the things we can do without

Government spending on consultants would be cut by half and communication spending by a quarter – saving £650m – while more Civil Service staff would be relocated from London to “cheaper” premises. Whitehall departments could set up “common spending policies” and share office space, as part of a “third generation of changes in public services”. In its report, Putting The Frontline First, the government points out there are now 4,300 senior civil servants compared with 3,100 in the mid-1990s.

Mr Brown said public sector workers earning an “over-generous” salary would be “named and shamed”, as many had “lost touch” with normality. In future, all new public sector jobs with salaries above £150,000 will have to be approved by the Treasury while the details of civil servants and other public sector managers under direct ministerial control currently earning that amount will be published.

Mr Brown has ordered a review of senior public sector pay by the Senior Salaries Review Body to report by the Spring. He said: “Money which should be spent on health, on schools, on policing and on social services is, in some cases, going on excessive salaries and unjustified bonuses, far beyond the expectation of the majority of workers. This culture of excess must change and will change.” He added that the government would use technological advances to make services more user-friendly and cheaper.

As an example, sending text messages to remind patients about GP appointments could help save up to £600m a year wasted on missed visits. The public needed more “feedback and interaction” when using services, such as crime maps and giving parents online details of children’s progress at school, he added. Mr Brown promised to bring more such details on to the internet by next year. “The proposals we are setting out in this plan – which is just one element of our efforts to reduce the deficit – will go further than we have ever gone before in streamlining central government,” Mr Brown said.

“We have already promised savings of £35bn a year by 2011 on top of the £26.5bn a year already delivered through the Gershon [spending] review. “But by identifying new ways of working – and being prepared to make the tough choices – we can deliver in excess of another £12bn in efficiency savings over the next four years.
“This includes £3bn of new efficiency savings identified since the Budget – of which over £1.3bn will come from streamlining central government.”

The proposals were laid out in Parliament by Liam Byrne, Chief Secretary to the Treasury, who said that saving money should be “everybody’s business”. Chancellor Alistair Darling told BBC One’s Andrew Marr show that public spending would be “a lot tighter than it was in the past” as a result.

He said parts of the troubled £12bn NHS IT system would be delayed as it “isn’t essential to the front line” – a move Health Secretary Andy Burnham told MPs on Monday would save £600m “over the lifetime of the programme”. Mr Darling said the full details of spending cuts would not be revealed until “the first half of next year at some point”.

Meanwhile, as part of plans to tackle the deficit in public finances, the Treasury is working on a possible windfall tax on what it sees as the exceptional profits of banks or the excessive bonuses of bankers.
But the Conservatives say the government is still not revealing the full extent of cuts needed to tackle Britain’s debts.

They say they would protect NHS and international development spending but the rest of Whitehall would face “very difficult choices” if the Tories won power. The party has also called for a moratorium on all government computer projects, claiming Labour has spent £100bn on IT since 1997 and that contracts worth another £70bn are due to be renewed or commissioned in the next two years.

Shadow Treasury minister Philip Hammond told MPs: “Since 2000 they’ve poured billions of pounds of taxpayers’ money into indifferent public services, borrowing and spending like it’s Monopoly money.”
He called Labour’s savings plans a “mish-mash of announcements and stolen clothes, in the dying months of their rule”.

Liberal Democrat Treasury spokesman Vince Cable said: “If the government knew there was inefficiency, why hasn’t the government already dealt with it?” We have now reached the point where the investment gap which we inherited…in 1997 has been fixed.

He added that more had to be done to improve the level of independence local government has from Whitehall, in an effort to increase accountability. Jonathan Baume, general secretary of the First Division Association, which represents senior civil servants, called the government’s proposals on public sector workers “irresponsible”. He added that “this announcement looks more like crude electioneering than a sober assessment of the implications for central government of the fiscal crisis”.

Personal budgets have been used in social care since the mid 1990s and ministers claim that they can encourage patients to get more from the NHS. Evidence shows that personal budgets have allowed people in social care to be more imaginative and use funds more “carefully” than the system did. It is said that the personal budget programme employed in social care includes direct cash payments to the individual as well as budgets that a patient can put in the hands of a social care professional.

Those who support the idea of patients having their own personal budget have said that there is no reason why this should not happen in health, although it will need to be carefully introduced.

There are those who claim that the system who say that the system can be misused if you are simply giving patients money however the information on this scheme states that where direct payments are handed over to individuals the way they are used is carefully monitored and people receive help from professionals about what services are available. The chief executive of the NHS Confederation, which represents managers, states: “There is a growing body of evidence to suggest health outcomes are improved when the patient is directly involved in making decisions about their treatment and the way in which care is delivered by NHS staff.” Despite this there are a number of obstacles to overcome before the scheme can be launched nationally.

There are lots of questions from those who have their doubts about this new system such as, should patients be allowed to spend their personal budgets on non cost-effective treatments? or should individuals be allowed to top-up their care? Should patients be allowed to invest personal budgets to be spent at a later date? Dr Hamish Meldrum, who is the chairman of the British Medical Association, said the policy appeared to “further establish the idea of healthcare as a commodity”, which would not be in patients’ “best interests”.

Those who support the idea of patients managing their own budget claim that “Personal health budgets could revolutionise the way in which care is delivered, but they are not without risks.”

Niall Dickson states: “Getting the initial payment level right will be important as will deciding what restrictions to place on the kind of treatment a patient is allowed to purchase with tax payers’ money, and from whom.”

Ministers imagine that it will be of particular interest to those with long-term conditions such as diabetes and people using mental health services, for example, a person with diabetes may choose to use their budget to get treatment from a community clinic rather than being referred to a hospital specialist. Launching the Bill, Health Secretary Alan Johnson said: “People rightly have high expectations of the care the NHS offers, and they want more control over their own health – which is why this Bill will give more power to patients and drive up the quality of care.” Andrew Lansley adds: “Personal budgets have been at pilot stage since 2005. If Labour had stuck to their promises to deliver them then patients would already be benefiting”.

It would seem that the majority of people are dubious of this new scheme as it seems that they are worried about several factors:

  • It is essentially privatising the NHS
  • Some people may get a higher budget than others
  • Some people may use their budget to jump through the waiting lists for procedures

Without a detailed plan of how the scheme will actually work it is impossible to know whether the scheme will actually work basically I’m not sure if the scheme is good or bad. Although the evidence would suggest that there is the potential for the scheme to work I think it may cause some people to lose out or be unable to get the treatment they need.