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.
Based on Liaison’s sample of 56 trusts, NHS trusts across England overspent by an estimated £26.6m on temporary staff in just nine weeks from 1 February to 31 March this year.
If trusts could achieve even a 70 per cent compliance with the third phase rate cap introduced on 1 April - set at 55 per cent above the relevant national pay rates for substantive staff - they could save £172m per year: this would represent 20 per cent of their annual bill for locums.
Andrew Armitage, Liaison 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 70per cent 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.
“We are committed to helping trusts achieve control over their temporary staffing spend. As we’re working across a large number of trusts and boards, we can provide the NHS with wider information around the broader agency staffing picture. It shows that there is a real opportunity for trusts to collaboratively work together to achieve better results, and we’re pleased to be able to facilitate that.”
The data for the Phase 2 Capped Rate Report is derived from Liaison’s 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 are using Liaison’s workforce services to help them to better manage and reduce their temporary staffing costs.