To ask the Scottish Executive what the costs and benefits are of pay modernisation contracts for consultants, GPs and NHS staff affected by Agenda for Change.
In relation to the costs of the new contracts it should be noted that costings were produced around the additional finance required for these new initiatives when they were introduced, and are detailed below. Now that these new terms and conditions have been agreed and are in place, the focus has moved to securing available benefits for the service and for patients and, as such, on-going work on additional costs has not been undertaken.
New Consultant Contract: The estimated additional cost to NHSScotland over the two year period 1 April 2003 to 31 March 2005 is £125.6 million.
New GP contract (known as General Medical Services (GMS) contract): The total expenditure on the GMS contract increased from £503.9 million in 2003-04 to £696 million in 2005-06 which was the first year in which the new contract was fully in place.
Agenda for Change: The estimated additional costs are £145 million in 2004-05, £215 million in 2005-06, £161 million in 2006-07 and £113 million in 2007-08.
All of these additional costs are considered to be affordable within the overall funding provided to boards during this period and all boards have managed to contain their expenditure within the funding allocated to them in this period.
As regards benefits, HDL(2005)28 set out the requirements for NHS boards to develop Pay Modernisation Benefits Realisation planning to demonstrate how they are using the new NHS contractual arrangements to deliver improvements in services for patients and to meet national targets and support local service redesign.
By modernising terms and conditions all three strands ensure that the NHS is well equipped to recruit and retain the staff it needs, not just in terms of fair remuneration but also through policies that allow staff to maintain the appropriate work life balance.
Changes in pay, terms and conditions do not in themselves effect improvements in patient care. The new contracts do however contain a series of provisions which can act as catalysts, as drivers for change, giving boards levers and tools that they can use to effect service re-design and improvement.
The Scottish Government will continue to work with the service to ensure that boards take full advantage of the opportunities which these new terms and conditions packages present to develop benefits for patients.