Wes Streeting launches crackdown to stop ‘rip-off’ agencies charging ‘eye-watering amounts’ to NHS hospitals for agency workers – as costs total £3bn a year

A major crackdown will put an end to ‘scammers’ charging the NHS £3 billion a year for temporary workers.

Health Minister Wes Streeting said ‘desperate hospitals’ have been forced to pay ‘eye-watering sums’ of up to £2,000 for a single nursing crew.

He accused the companies of fueling staff shortages by luring workers away from permanent NHS roles with the promise of higher pay.

They are then loaned back to the health care system at high rates, leaving taxpayers out of pocket.

Under the new proposals, trusts would be banned from using agencies to employ entry-level temporary workers in pay bands two and three, such as healthcare assistants and domestic support staff.

Health Secretary Wes Streeting accused companies of luring NHS workers away from permanent jobs with the promise of higher pay and fueling staff shortages

Under new proposals, trusts would be banned from using agencies to employ entry-level temporary workers in bands two and three (file photo)

And NHS staff would be stopped from resigning and immediately returning their services through a recruitment agency.

The Department of Health and Social Care believes this measure could save ‘significant amounts’, improve the quality of care and increase patient safety.

Reducing the dependence of staff on agencies is said to reduce the number of ‘clinical incidents’.

Mr Streeting will outline his plans at the annual NHS Providers conference in Liverpool tomorrow [WED]where he is expected to say: ‘For too long, desperate hospitals have been forced to pay eye-watering sums of money to temporary staff, costing taxpayers billions and taking experienced staff out of the NHS.

‘We won’t let the NHS be ripped off anymore.

‘Last month the Chancellor made a historic investment in our healthcare system, which must be reformed or will disappear.

‘I am determined to ensure that the money is well spent and benefits patients.

‘These changes could help keep staff in the NHS and deliver significant savings that can be reinvested in the frontline.’

There are approximately 113,000 vacancies within the healthcare sector, which uses temporary staff to cover unfilled posts, illness or additional clinics.

Demand and costs have continued to rise in recent years due to industrial action by the British Medical Association and the Royal College of Nursing, among others.

Julian Kelly, Chief Financial Officer at NHS England, said: ‘The NHS is committed to ensuring that every penny of taxpayers’ money is used wisely for the benefit of patients and to ensure fairness for our permanent staff.

‘While agency spending is at record lows and trusts are on track to save £1 billion over two years, we want to go even further.

‘That is why the NHS, together with government and providers, will launch a consultation with a view to stopping the use of agencies to fill entry-level posts, building on the approach we have successfully imposed on administrative and estate staff.”

There are approximately 113,000 vacancies within the healthcare sector, which uses temporary staff to cover unfilled vacancies and illness (file photo)

The Department of Health and Social Care said the proposals will ensure greater fairness in the workplace by ensuring staff carrying out the same duties are not paid significantly different amounts.

She pledged to take further action in the future to reduce reliance on short-term agency staffing and other measures to reform and improve the efficiency of the NHS.

NHS England will launch a consultation on the proposals in the coming weeks, asking for the views of staff, trade unions and NHS provider organizations on the new proposals.

Mr Streeting is also expected to use his speech in Liverpool to say how he will ensure that the extra funding announced in the Budget results in shorter waiting times for patients.