The government has announced a new performance-based pay system for NHS leaders with bonuses for improved patient care and penalties for failing Trust executives.
Bonuses of up to 10% will be on offer for top performers, whilst leaders of failing Trusts will have annual pay rises docked. The new measures are aimed at improving NHS performance and driving progress on cutting waiting lists.
Under the new plans, the government will look to learn from some of the most effective businesses in the country to recruit top talent to struggling Trusts, with leadership vacancies in badly performing areas coming with a temporary pay increase of 15%, worth up to £45,000*.
Pay bands for senior managers will also be refreshed to attract and retain effective leaders within the NHS.
At the same time, failing CEOs could see up to £15,000** docked from their salaries if they run into debt or fail to deliver improvements. This is in addition to any existing processes to tackle poor performance, where persistently failing managers could be sacked if they do not turn things around.
Productivity drive
The bold overhaul also establishes stricter accountability for very senior managers, demanding greater financial rigour across all NHS Trusts and Integrated Care Boards (ICBs) and a drive for productivity.
Health and Social Care Secretary Wes Streeting says: “Some of the best businesses and most effective organisations across Britain and the world reward their top talent so they can keep on delivering. There’s no reason why we shouldn’t do the same in our NHS.
“We will reward leaders who are cutting waiting times and making sure patients get better services. But bonuses and pay rises will be a reward and not a right, because I’m determined that every penny we invest through our Plan for Change is money well spent.
“Our carrot and stick reforms will boost productivity, tackle underperformance and drive up standards for patients.”
The guidelines setting out new penalties and rewards for Trust leaders will introduce learning from leading businesses in to the NHS. There will be strict rules for NHS bosses, who will be expected to spend budgets wisely and ensure Trusts are not going into debt. The government wants to see Trusts deliver more efficiency, ensuring patients get more for taxpayers’ money being invested.
As part of the plans, the government is also bringing together pay structures for senior managers at ICBs and NHS Trusts to boost consistency and align standards. Any Trust or ICB that fails to comply with the new guidelines will be required to publicly justify its decision in its annual report under a strict ‘comply or explain’ approach.
* Based on the highest current salary of a trust CEO (under the new framework).
** The £15,000 is based on last year’s 5% pay uplifts, and the highest current salary of a trust CEO being £299,250 (under the new framework).
