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NHS consultant contract reviewed

Summary

This National Audit Office (NAO) Report ‘Pay modernisation: a new contract for NHS consultants in England’ (HC 335) examines the contract for NHS consultants agreed in 2003 and widely implemented by April 2004.

The contract was needed to increase the size and commitment of the consultant workforce if it was to deliver the NHS reform agenda and comply with the requirements of the European Working Time Directive to reduce consultants’ hours.

By the end of March 2006, the Department of Health had spent £715m on the new consultant contract (27% more than the original estimate of £565 million), partly because the government had underestimated the amount of work consultants did.

In September 2005, approximately 32,000 consultants worked for the NHS in England, primarily within NHS acute and mental health hospitals, accounting for £3.8bn of NHS expenditure in 2005-06.

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Law-Making Explained

This is a House of Commons Paper (HC 335 2006-07): it is a report from the National Audit Office (NAO).

Find out more about House of Commons Papers.

How does it affect me?

If you work in or are a patient of the NHS, this affects you.

The National Audit Office concludes that the contract is not yet delivering the full value for money to the NHS and patients that was expected.

The contract has helped to align consultants’ pay levels with their contribution to the NHS, but some consultants are actually working the same if not fewer hours for more money. There is little evidence that ways of working have been changed, and few trusts have used job planning as a lever for improving participation or productivity.

The contract has delivered some benefits in management of consultant time, prevention of an increase in private practice, securing extra work at plain-time and increasing participation. The contract has the capacity to provide some new levers for further enhancing management control. There is scope for the NHS trusts to make much more of the opportunity presented by the annual renegotiation of job plans to devise a set of agreed job plans that will deliver more efficient and effective services to patients.

Visit the Department of Health website.

Find out more about the work of the National Audit Office.

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