Reducing NHS bureaucracy to release resources to the frontline UK

Main Category: Mental Health
Article Date: 22 Jul 2004 - 20:00 PDT


The number of NHS (National Health Service, UK) bodies that work at 'arm's length' from the Department of Health will be reduced, saving at least £500 million in funds and increasing resources that can be channelled directly to frontline NHS patient care, Health Secretary John Reid announced today.

In a written Commons statement naming the bodies that will merge, be abolished or see their functions streamlined, John Reid set out the second stage of the Department of Health's plans to overhaul the way it works with stakeholders in the health and social care system.

John Reid said:

"Reducing the cost of arm's length bodies will generate resources that are the equivalent of four new hospitals or 20,000 more nurses by 2008. The arm's length body sector has done a lot of good work, but it has grown over several decades and no longer meets current health and social care needs or those of future generations.

"The NHS has embarked on a long-term programme of reform to devolve power and responsibility for resources to frontline NHS organisations. I announced a review of arm's length bodies at the Health Select Committee last October. Over the summer, we will be looking at how the changes will be implemented and in what timescales.

"Arm's length bodies need to be streamlined in number and functions. They must adopt a different approach so that their functions are delivered effectively and the time spent by frontline staff responding to central needs is minimised.

"Last week, the Chancellor announced the Government's plans for releasing resources to the frontline. Our review of arm's length bodies shares a common objective with the Gershon review in that it seeks to minimise bureaucracy. It also carries forward the principles of the Lyons Review, which called for the relocation of public sector jobs away from London and the South East.

"The Report on the Reconfiguration of the Department of Health's Arm's Length Bodies is published today. An implementation plan setting out the more detailed picture and roles and responsibilities for arm's length bodies will be finalised and published in the autumn."

Harry Cayton, the Department of Health's Director for Patients and the Public said:

"The Department of Health remains committed to a patient centred NHS. I look forward to seeing the savings and the reduction in bureaucracy arising from the changes being translated into benefits for patients and frontline staff."

The main changes that will see the number of Department of Health arm's length bodies reduce by almost half from 38 to 20 and see a 25 per cent reduction in staff working in the sector by 2008 are:

-- the Healthcare Commission will take on responsibility for the regulation of care for people detained under the Mental Health Act from the Mental Health Act Commission, which will be abolished;

-- a new Regulatory Authority for Fertility and Tissue will be created to encompass the work of the Human Fertilisation and Embryology Authority (HFEA) and the proposed Human Tissue Authority;

-- the National Institute for Clinical Excellence (NICE) will take on the work of the Health Development Agency (HDA) to link standards on the prevention and treatment of ill health. The HDA will be abolished;

-- the Commission for Patient and Public Involvement in Health (CPPIH) will be abolished and stronger, more efficient arrangements will be put in place to provide administrative support and advice to Patients' Forums;

-- the National Patient Safety Agency (NPSA) will support independent ethical reviews of all research that could affect patients and take the lead on hospital food, cleanliness and safe hospital design. It will also become responsible for national confidential enquiries from the National Institute for Clinical Excellence (NICE). NHS Estates will be abolished;

-- the Health Protection Agency will assume functions from the Public Health Laboratory Service (PHLS) and the role of the National Radiological Protection Board (NRPB), which will both be abolished;

-- a new Blood and Transplant Authority will be created to encompass the services provided by the National Blood Authority and UK Transplant, which will be abolished;

-- the NHS Litigation Authority (NHSLA) will be reconstituted to oversee the proposed NHS redress scheme and manage financial compensation nationally. It will also take on the functions of the Family Health Services Appeal Authority, which will be abolished;

-- a new Health and Social Care Information Centre will be created to reduce burdens on the frontline by co-ordinating information requirements across a wide range of bodies. The new Centre will retain some of the information-related functions of the current NHS Information Authority, (NHSIA) which will be abolished, and take on the statistics and information management functions of the Department;

-- the National Programme for Information Technology will become an executive agency for three to five years, incorporating the IT functions of the NHSIA; and

-- a new NHS Business Services Authority will be created to replace the NHS Pensions Agency, the Dental Practice Board, the Prescriptions Pricing Authority and the NHS Counter Fraud and Security Management Authority, which will all be abolished.

The Department plans to develop a memorandum of understanding on human resources processes with those organisations affected by the review. This will be developed in partnership with the relevant arms length bodies.

Related links
Reconfiguring the Department of Health's arm's length bodies Notes to editor

1. The Department of Health's review covers those 42 arm's length bodies undertaking national functions sponsored by the Department that were in existence or in the pipeline in 2003-04. The work they undertake ranges from back office administrative functions to complex ethical or clinical related work. The expenditure for 2003/4 for arm's lenth bodies was £4.8 billion, which includes operating costs of £1.8 billion. They employ around 25,000 staff.

2. Full details of the arm's length bodies that are being merged, rationalised or abolished, are available via the above link.

3. For media enquiries only contact the Department of Health Media Centre on 020 7210 5724/5329/4984/5229. For all other queries please contact the public enquiry line 020 7210 4850.

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