Regional Pay (NHS)

Debate between Iain Wright and Stephen Gilbert

Wednesday 7th November 2012 Commons Chamber

[Mr Iain Wright (Hartlepool) (Lab)]

It is a pleasure for this pleb and prejudiced northerner to follow another self-confessed pleb and prejudiced northerner, the hon. Member for Southport (John Pugh).

Much of this debate, and the excellent Adjournment debate in Westminster Hall this morning, has focused on the south-west. I would like to focus on what is happening with regional pay in the NHS in the north-east and, in particular, in my local NHS trust. As my right hon. Friend the shadow Secretary of State said, last month North Tees and Hartlepool NHS Foundation Trust issued HR1 “advance notice of potential redundancies” forms to almost 5,500 trust staff based not only in my constituency but in Easington and Stockton. I am pleased to see my hon. Friend the Member for Stockton North (Alex Cunningham) in his place and hoping to catch your eye, Mr Deputy Speaker. The trust was asking staff to sign new contracts that specifically end the practice of enhanced sickness pay.

I am very concerned about the tactics employed by the trust, which can be seen only as hostile, intimidatory and confrontational. Through the issuing of the HR1 forms, the trust, in effect, said to staff, “Sign this or be sacked.” In its last annual report, published earlier this year, North Tees and Hartlepool NHS Foundation Trust stated that

“our most valuable and important resource…our staff. The value of our staff cannot be over-emphasised. Quality, value and recognition are the themes which run through all our activities, to enable us to attract, retain, reward and develop our current and potential future staff.”

I could not agree more with those sentiments, and I want to put on the record my tribute to all the hard-working NHS staff all over the country, but especially in my north-east constituency, who work valiantly on behalf of my constituents. However, I do not think that the 5,500 trust staff issued with HR1 forms feel particularly valued or recognised at the moment.

Staff who are most affected by those proposals comprise the lowest-paid in the trust, such as band 1 nurses, porters, domestic and catering staff and midwives. However, the proposals will affect all employees. I understand that staff who are new starters, those who might gain promotion and those who are changed on to flexible working for whatever reason—whether it be that they are looking after a child or a sick and elderly relative—were automatically put on to the new contract as of last Thursday, without consultation.

The specific issue—enhanced sickness pay—could and should be resolved amicably through negotiations between unions and management on a national basis. I understand that the matter is subject to national negotiations as part of “Agenda for Change”, but, as regards my trust, I am concerned about what is coming next for workers’ terms and conditions.

[Stephen Gilbert (St Austell and Newquay) (LD)]

I think we know what is coming next, whether it is in North Tees and Hartlepool or in the south-west—cuts to pay and reduced employment benefits. In my part of the country, and I am sure in the hon. Gentleman’s, this does not have public, patient or political support.

[Mr Wright]

The hon. Gentleman makes a pertinent point. I am about to come to the financial condition of my trust, which I imagine is true of other trusts.

A total of £40 million needs to be cut from the trust’s budget in the three-year period from 2011-12 to 2013-14—so much for real-terms increases in NHS budgets, as put forward by the Secretary of State at the Dispatch Box. Given that pay costs represent over 68% of the trust’s total income, it seems inevitable, given the financial pressures that the Government are putting the trust under, that there will be a need to cut pay costs still further, whether through redundancies, recruitment freezes or changes to terms and conditions.

The change on sickness enhancement pay is the first of many, and I suggest to the Minister that we must see it as the thin end of the wedge. The proposal on sickness enhancement pay will go through, and then, as the hon. Member for St Austell and Newquay (Stephen Gilbert) said, there will be changes to or cancellations of increments for staff, cuts in overtime, and further pay freezes for lower and middle-paid staff, leading to less money in the local economy. The actions of North Tees and Hartlepool NHS Foundation Trust on sickness enhancement pay simply amount to regional pay through the back door.

As a result, we will see a steady deterioration in pay and other terms and conditions for NHS workers in my constituency relative to other areas and other trusts, even within the north-east. I do not want a race to the bottom with regard to health care in my area. I am concerned that recruitment and retention of staff in North Tees and Hartlepool NHS foundation trust will become an issue because pay will be higher elsewhere, even within the region. Staff may want to move elsewhere, or may not want to work in the trust in the first place, which will lead to a deterioration in quality health provision.