Four leading providers of agency staff to the NHS have all reported a sharp decline in turnover and profits as trusts continue to cut spend on temporary workers, HSJ reports.
The most recent accounts of ID Medical Group, Independent Clinical Services, Newcross Healthcare and Medacs Healthcare all reported significant deteriorations in their revenues compared to their previous reporting periods. All four also recorded substantive decreases in their profitability, with Newcross and Medacs both posting losses.
More than £1bn was saved on agency spending in 2024-25, according to a government announcement in June. NHS England had asked trusts to reduce spending in this area to 3.2 per cent of their total pay bill. Trusts have been told to cut spending in the area “as far as possible” during 2025-26, and by at least 30 per cent.
The Recruitment and Employment Confederation, a professional body that represents recruitment agencies, claimed health secretary Wes Streeting’s “fixation” with cutting agency staff would ultimately have a detrimental impact on patients because the waiting list would grow.
REC deputy CEO Kate Shoesmith said: “It is unclear how the NHS can deliver better and more cost-effective services under these conditions. If they’d let us, we’d collaborate with the department to navigate these times. Agencies have so much insight on true workforce planning solutions to offer.”
Many agency workers have been moved on to trusts’ bank staffing. REC claimed this was more expensive, a statement that was denied by the Department of Health and Social Care.
Date: 28 October