REC responds to Labour concerns on healthcare

Commenting on the importance and value of agency staff to the NHS, the Recruitment & Employment Confederation Deputy Chief Executive Kate Shoesmith said:

“Agency staff keep the NHS going. They offer trusts rapid and reliable help to overcome the serious labour shortages in healthcare. Our most recent data shows nearly 73,500 active job postings for nurses alone. For patients, the use of agency healthcare staff means more chance of shorter waits for appointments, scans and diagnoses. 

“There are staffing frameworks that fix agency wage and margin rates. Recently, we asked the Public Accounts Committee to investigate value for money for all the different staffing arrangements in the NHS. Let's get some facts in place and then work on solutions. 

“Politicians must stop shouting about the symptom and treat the issue. The temptation to agency bash only distracts from the entrenched problems of low pay and poor flexibility offered to NHS staff. The problem in the NHS is one of staff retention. Agencies are a positive story because they show the NHS how to recruit and retain workers in healthcare by offering a better life/work balance.” 

The facts of the matter 

• Agency price caps were introduced for framework agencies in 2016 - nearly a decade ago and have remained unchanged since then – limiting the charge rate for agencies that supply workers via frameworks.  
• As an example, an agency fee on framework is capped at around 10 per cent of the hourly rate for a nurse.  
• Out of this margin, agencies pay a framework fee, train people, must meet strict compliance standards and pay for their 24/7 operation - as agency staff can be needed in emergency situations at any time. 
• NHS banks and off-framework providers are not restricted by pay caps. Much of the increase in “agency” spend since the pandemic is down to them. 
• There is still high demand for healthcare staff. REC’s Report on Jobs in July showed healthcare permanent vacancies have grown non-stop for 35 months. 
• Nurses, carers, clinical professionals, occupational therapists, pharmacists and optometrists are all on the shortage occupation lists in the Report on Jobs. 

Kate Shoesmith added: 

“The cost of the temporary workforce has increased sharply since the pandemic, but this is more to do with the NHS increasing spend on staff banks and off-framework contracts. It is also worth remembering that the money quoted for these shift rates is going to healthcare workers.

“Rather than sideline agencies, politicians and the NHS should work with them to deliver more efficient and better treatment for patients and outcomes. Our door is open and we hope that the relevant parties will be more forthcoming in discussing long term workforce planning solutions with our industry.

“As Jonathan Reynolds the Shadow Secretary for Business and Industrial Strategy has said: “A modern industrial strategy requires building a partnership between the public and private sectors to meet the immense challenges we face”. 

Ends 

Notes to editors: 

Labour Market Tracker: Stronger August for hiring hints at labour market resilience and possible recovery - REC – August 2023 

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