Relief as NHS agency staffing ban put on hold

NHS Improvement has paused until further notice its plans to ban NHS Trusts from using agency workers who also hold substantive roles in the health service.

In a letter sent to trust leaders this morning, NHSI confirmed the ban would now not begin from tomorrow 1 April, as planned, and that normal processes could remain in place.

In a statement, Jim Mackey, CEO of NHSI, highlighted that trusts had already taken “great strides” in cutting back on agency costs, saving over £700m this year alone. He also observed that the nursing workforce had contributed the majority of the savings made, and was grateful for these efforts.

Mackey said: “We have listened and responded to the feedback from nurses about the latest agency rules on substantive staff. We’re committed to getting it right for nurses and doctors alike, and making sure the system and the way staff can work is fair and equal, which is why we’re taking more time to work with the sector.”

Although the agency staffing ban is on hold, new tax rules covering IR35, also due to start from 1 April, would still come into force tomorrow due to HMRC regulations, NHSI confirmed today.

"We will be supporting trusts with the new tax rules, which come into force next week, and will continue with our focus on getting medical locums to match the success nurses have achieved in bringing costs down.”

The news has been welcomed by the CEO of the Recruitment & Employment Confederation Kevin Green, who said NHSI was “right” to back away from the ban. 

He said: “We are delighted NHSI has seen sense and stepped back from this hastily proposed ban, which risked throwing the NHS into chaos.

“It’s the right thing to pause and think again having listened to the feedback from us, our members and other stakeholders like the RCN, and to the voices of all the nurses and doctors who work so hard in the NHS, no matter what their employment status.”

Green confirmed the REC met with NHSI to discuss the ban, and was now committed to working with the organisation to help develop flexible staffing models for the NHS to “ensure safety and sustainability for patients and workforce alike”.

The new rules covering IR35 will mean a greater responsibility will shift to employers such as the NHS, to correctly apply PAYE and National Insurance Contributions for self-employed workers.

• What are your views on this issue? Email us at [email protected] or tweet us below to tell us your thoughts. We will run comments online in a round-up at the end of the week.

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