NHS Budget
After the latest Brown budget, sparks are flying over his lack of mention of the NHS. Gordon’s rebuttal is that he shouldn’t have to reiterate what’s already been laid out: he’s ploughing multi-billion sums into the NHS, he’s told us this before, and things are going to stay that way.
The more concerning issue, after what was quite frankly a pretty political budget, is not what strategy lay behind Brown’s choice to announce or emphasise certain uneventful changes over the others (most of the financial tinkering probably not being much more important than “the NHS is staying as it was”), but where it is that all that money he’s already told us he’s ploughing into the NHS is actually going.
There is a simple reason why there is little by way of noticeable improvement across the NHS despite huge and repeated investment: salary rises. The average wage for a GP now sits at around £84,000; you only need twelve GPs, and you’re draining a million pounds every year from the NHS’s not-so-bottomless pit of resources.
Now, I’ll be absolutely fair, pay rises at this level have not been echoed across the board; other NHS jobs have seen more moderate increases, and indeed the government has tacitly acknowledged that the GPs’ pay packet was a cock-up. Sadly, of course, cutting the pay of public sector workers is still a cardinal sin for those in power, so the solution is going to be a pay freeze for GPs — presumably for quite a long time — to bring things back into line.
The exception, people who actually need pay rises, are probably nurses. After three years of medical degree and another three years at clinical school, most doctors have probably invested enough time and effort to be all but set in their career path. Nurses, on the other hand, are something the NHS can neither recruit nor keep hold of once they are employed. Perhaps a financial incentive could actually be of use here?
Another ridiculous drain on NHS money is giving bursaries to students seeking medical-related employment. For example, physiotherapy students receive £2,000 a year with no obligation to pay it back. Another case of necessary incentive? I would argue not: physiotherapy is the second-most-oversubscribed course in the country, after law, with Nottingham University receiving 1,600 applicants for 68 places. Having whittled down this frankly absurd number into an undergraduate population and got them through their degree, there are horror stories of physio graduates being unable to find jobs. So why, when there are far too many of them already is the NHS offering cash to encourage applicants?
The NHS is also screwed in a more general sense. Changes are being made to bring gender equality into the workplace and to reduce doctors’ stereotypically long hours. The latter has the obvious upshot of requiring more doctors to cover all the shifts. The former only becomes a problem when you realise that, in previous times, the NHS was getting a male to female ratio of around 70:30; now, it’s more like 30:70. So, about two thirds of our doctors will probably take maternity leave, and maybe even a few years off, in a way that previous generations simply haven’t.
It is a little unfair to blame the NHS money drain entirely on increased money for staff, however. Other problems are chronic mismanagement and lack of financial accountability, the clichéd public sector flaws.
So, maybe pouring in vast quantities of cash and using what you don’t waste in bureaucracy on giving staff pay rises isn’t the solution?
No reason to mention all this in the budget, of course: better instead to make a pledge to give state schools as much money as their private counterparts, with no stipulation of how much this is or when it could come into effect.
I love New Labour.
March 27th, 2006 at 18:53
Quite frankly the most shocking part of all of this is that it only takes 12 GP’s to use up an entire million pounds a year! I guess little old Newport alone needs a million for GP’s!
March 30th, 2006 at 16:34
The cock-up in setting doctors salaries was quite impressive - the new deal was “performance related” and intended to reward doctors for doing more work/being more efficient, but the civil servants who did the sums set the benchmarks too low - so that doctors found they could hit the “new” targets without actually doing any more work at all. Some doctors who ARE working harder, are now pullng >£100,000 per year !
May 7th, 2006 at 21:35
“After three years of medical degree and another three years at clinical school, most doctors have probably invested enough time and effort to be all but set in their career path.”
Sadly not as many as people might think, certainly in the UK - when considering the Issues facing the NHS the BMA (http://www.bma.org/ap.nsf/Content/nhsissuesfaqs) - “between 15 per cent and 20 per cent of doctors leave UK medicine within a few years of graduation”.
Some incentives might be required to prevent this rising…
May 7th, 2006 at 22:39
Rather than over-incentivising the final package, it might be cheaper just to train more doctors, especially if they slash the unnecessary NHS subsidies to medical trainees. With medical schools turning away top-notch A-level candidates, it\’s not like there\’s a shortage of competent applicants…
However, I won\’t claim to have done the sums—though I daresay with that rather good link I probably could make a stab if it weren\’t past my bedtime!—so it might well not be cheaper at all.
The other issue is the how many doctors are tempted to stay on for every pound of salary increase. Given the statistics on that page, there are no figures suggesting medics leave due to lack of pay, but big numbers leaving because they want a change of lifestyle or a harbour a desire to work in developing countries. I\’m willing to bet that the hugely over-inflation pay rises weren\’t worth every penny.
I think I should probably retract my original unqualified statement, but I also think that since this issue is clearly quite significant (a fifth of doctors certainly surprises me), highlighting it opens yet another can of worms!