Member News
Claims that a simplified pay system for NHS staff would result in major savings are "pie in the sky", according to the chairman of the Commons public accounts committee.
Edward Leigh was speaking in the wake of a National Audit Office (NAO) report which found the Agenda for Change system, which promised to achieve savings of around £1.3bn by 2009, has so far had little impact on the £28bn NHS wage bill.
The scheme was introduced in 2004 as a single pay system for all health service staff except doctors, dentists and senior managers. But the report says that no central monitoring system is in place to measure improvements in productivity.
There was also criticism of trusts for failing to fully implement a new service giving staff more career advice, with a limited take-up forcing a relaunch in 2007.
NAO head Tim Burr said the transfer of virtually all NHS staff on to the new pay structure had been a success, but the promised benefits had failed to materialise.
"The benefits that should have come with this new simpler system, such as more effective working, have not been wholly achieved," he said.
"So the programme as a whole has further to go before it achieves the intended value for money for the taxpayer."
And Leigh said the scheme had achieved neither improved productivity nor savings to the taxpayer.
"It is not clear whether Agenda for Change has achieved any savings to the taxpayer whatsoever," he said.
"The department's prediction that the programme would save £1.3bn is pie in the sky."
Dods Parliamentary Communications Ltd