Despite efficiency drives, local authorities are likely to continue using agencies to recruit social workers due to a dearth in talent, according to Dean Shoesmith, president of the Public Sector People Managers’ Association (PPMA) and HR director, Sutton and Merton Council.

In an interview with the Financial Times, Sir Peter Gershon, a former government adviser and current efficiency adviser to the Tories, said driving down the use of contract staff and agency staff and not filling empty posts would save between £1bn-£2bn in 2010-11.

But Shoesmith told Recruiter that for areas like in childcare and social work, it is extremely difficult to recruit and retain. “Tragic circumstances like the Baby P case have hit local authorities’ attempts to recruit people for those qualified positions. To some degree, we have to use agency workers. We struggle to recruit and retain qualified social workers and so do agencies.

“Doing more to recruit and retain our own social workers has to be the way forward. At the London Borough of Merton, we have created social worker trainee schemes which works well. The problem is that if you get good ones - it is hard hanging on to them and there is only so much you can do to hang on to them.”

However, Steve Porter, a director of medical and health recruiter, Mediplacements told Recruiterhe is concerned that the drive for efficiency savings will lead to cuts in the use of temporary staff in the NHS.

“Historically it [cutting temporary staff] is the quickest way to save money. Efficiency savings are not as easy to implement.”