Draft National Health Service (NHS Payment Scheme - Consultation) (No. 2) Regulations 2022

Feryal Clark Excerpts

Monday 9th January 2023 General Committees

[Feryal Clark (Enfield North) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Graham. Ensuring that patients get the best quality care is in the interests of everyone, and the Labour party will always support measures that seek to achieve that. Although we have some reservations, we will not oppose the regulations today.

The proposed consultation is important because the NHS payment scheme will govern how billions of pounds of taxpayer money is spent. Quality of care and value for money should always be at the core of our health service’s decision making. They are not alternative options or binary choices. They are both critical to the future of our NHS, so we need financial management in the health service to be able to deliver both in parallel. Given the urgency of the crisis affecting the NHS, action to deliver that must come at pace. We have seen during the pandemic what happens when the NHS strays from those principles, and we cannot allow such events to happen again.

The former tariff system, which the regulations form part of replacing, sought to deliver a more competitive environment to drive up quality and improve outcomes for patients, yet too often it was a rigid system that did not allow for the flexibility that individual commissioners needed. Giving local decision makers the tools that they need to improve services in their areas is vital to ensuring that the NHS meets the needs of patients where they are, not where the system thinks they should be.

It is because of that that a rigorous and effective consultation on changes is so important. Done properly, payment schemes can deliver a meaningful impact on patient outcomes. The payment-by-results incentives used by the last Labour Government made a significant impact on elective waiting lists. However, they are not appropriate in every case, and options must be carefully considered. Hon. Members will know that elective waiting lists are now at record levels. Given the reports of Ministers wanting to bring back the payment-by-results incentives in some form, I would be keen to hear from this Minister what plans they have to do that.

Getting these changes right through effective consultation is in the interests of everyone and, crucially, will ensure better outcomes for patients. I look forward to hearing from the Minister how the Government intend to deliver that.