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Health and Social Care BillPage 370

Preparatory work by clinical commissioning groups

10 (1) This paragraph applies to a clinical commissioning group which is
prevented by a direction given by virtue of paragraph 8 or 9 of this Schedule
from exercising a function.

(2) 5The giving of the direction does not prevent the group from doing anything
that appears to it to be necessary or expedient for the purpose of preparing
it to exercise that function.

Arrangements between PCTs and clinical commissioning groups during initial period

11 (1) A Primary Care Trust may at any time during the initial period make
10arrangements with a clinical commissioning group under which the group
exercises any functions of the Primary Care Trust on its behalf.

(2) Any reference (however expressed) in the following provisions of Chapter
A2 of Part 2 of the National Health Service Act 2006 to the functions of a
clinical commissioning group includes a reference to the functions of a
15Primary Care Trust that are exercisable by the group by virtue of sub-
paragraph (1)—

(a) section 14P(1),

(b) section 14Q,

(c) section 14R(1),

(d) 20section 14T,

(e) section 14U(1),

(f) section 14V,

(g) section 14W(1),

(h) section 14X,

(i) 25section 14Y,

(j) section 14Z(1) and (2),

(k) section 14Z3(7).

(l) section 14Z4(1),

(m) section 14Z5(2),

(n) 30section 14Z7(7) insofar as it defines “commissioning functions” in
section 14Z8,

(o) sections 14Z17(1), 14Z19(1) and 14Z21(1) and (3),

(p) in Schedule 1A, paragraphs 3(1) and (3), 6 and 12(9)(b).

(3) Arrangements made under sub-paragraph (1) do not affect the liability of
35the Primary Care Trust for the exercise of any of its functions.

Power to make payments to the Board during initial period

12 (1) The Secretary of State may make payments to the Board of such amounts as
the Secretary of State considers appropriate towards meeting the
expenditure of the Board which is attributable to the performance by it of its
40functions during the initial period.

(2) Payments under sub-paragraph (1) may be made at such times and on such
terms and conditions as the Secretary of State considers appropriate.

Health and Social Care BillPage 371

Support for clinical commissioning groups during initial period

13 (1) A Primary Care Trust may provide assistance or support to a clinical
commissioning group during the initial period.

(2) The assistance that may be provided includes—

(a) 5financial assistance, and

(b) making the services of the Trust’s employees or any other resources
of the Trust available to the group.

(3) Assistance or support provided under this paragraph may be provided on
such terms and conditions, including terms as to payment, as the Trust
10considers appropriate.

(4) The Primary Care Trust may, in particular, impose restrictions on the use of
any financial or other assistance or support provided under this paragraph.

(5) A clinical commissioning group must comply with any restrictions imposed
under sub-paragraph (4).

Section 56(4)

15SCHEDULE 7 Abolition of the Health Protection Agency: consequential amendments

Parliamentary Commissioner Act 1967 (c. 13)Parliamentary Commissioner Act 1967 (c. 13)

1 In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc.
subject to investigation)—

(a) 20omit the entry for the Health Protection Agency, and

(b) in the Notes, omit the paragraph on the Health Protection Agency.

Superannuation Act 1972 (c. 11)Superannuation Act 1972 (c. 11)

2 In Schedule 1 to the Superannuation Act 1972 (kinds of employment to
which a scheme under section 1 of that Act can apply), omit the entry for the
25Health Protection Agency.

Local Government Act 1972 (c. 70)Local Government Act 1972 (c. 70)

3 In section 113 of the Local Government Act 1972 (placing of staff of local
authorities at disposal of other local authorities), in subsection (1A) omit
“the Health Protection Agency,” in each place it occurs.

30Health and Safety at Work etc. Act 1974 (c. 37)Health and Safety at Work etc. Act 1974 (c. 37)

4 The Health and Safety at Work etc. Act 1974 is amended as follows.

5 In section 16 (approval of codes of practice), in subsection (2)(a) omit the
words from “(and, in particular,” to the end.

6 In section 50 (exercise of certain powers to make regulations), in subsection
35(3)(a) omit the words from “, and, in the case of” to “the Health Protection
Agency”.

Health and Social Care BillPage 372

House of Commons Disqualification Act 1975 (c. 24)House of Commons Disqualification Act 1975 (c. 24)

7 In Part 3 of Schedule 1 to the House of Commons Disqualification Act 1975
(offices disqualifying for membership of the House), omit the entry for the
chairman and any non-executive member of the Health Protection Agency.

5Northern Ireland Assembly Disqualification Act 1975 (c. 25)Northern Ireland Assembly Disqualification Act 1975 (c. 25)

8 In Part 3 of Schedule 1 to the Northern Ireland Assembly Disqualification
Act 1975 (offices disqualifying for membership of the Assembly), omit the
entry for the chairman and any non-executive member of the Health
Protection Agency.

10Employment Rights Act 1996 (c. 18)Employment Rights Act 1996 (c. 18)

9 In section 218 of the Employment Rights Act 1996 (change of employer), in
subsection (10) omit paragraph (dd).

Freedom of Information Act 2000 (c. 36)Freedom of Information Act 2000 (c. 36)

10 In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public
15authorities), omit the entry for the Health Protection Agency.

International Development Act 2002 (c. 1)International Development Act 2002 (c. 1)

11 In Schedule 1 to the International Development Act 2002 (statutory bodies
who may exercise certain powers for the purpose of assisting countries
outside the UK), omit the entry for the Health Protection Agency.

20Nationality, Immigration and Asylum Act 2002 (c. 41)Nationality, Immigration and Asylum Act 2002 (c. 41)

12 (1) Section 133(4) of the Nationality, Immigration and Asylum Act 2002 (power
of medical inspector to disclose information to health service bodies) is
amended as follows.

(2) In paragraph (a)—

(a) 25before sub-paragraph (i) insert—

(ai) the Secretary of State,, and

(b) omit sub-paragraph (vi) and the “or” preceding it.

(3) In paragraph (b)—

(a) after sub-paragraph (i) insert “or”, and

(b) 30omit sub-paragraph (iv) and the “or” preceding it.

(4) In paragraph (c)—

(a) before sub-paragraph (i) insert—

(ai) the Secretary of State,,

(b) after sub-paragraph (i) insert “or”, and

(c) 35omit sub-paragraph (iii).

(5) In paragraph (d)—

(a) after sub-paragraph (ii) insert—

(iia) the Regional Agency for Public Health and
Social Well-being established under section 12

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of the Health and Social Care (Reform) Act
(Northern Ireland) 2009, or, and

(b) omit sub-paragraph (iv) and the “, or” preceding it.

Scottish Public Services Ombudsman Act 2002 (asp 11)2002 (asp 11)

13 5The Scottish Public Services Ombudsman Act 2002 is amended as follows.

14 In section 7 (matters which may be investigated: restrictions), omit
subsection (6A).

15 In Part 2 of Schedule 2 (persons liable to investigation), omit paragraph 90.

Civil Contingencies Act 2004 (c. 36)Civil Contingencies Act 2004 (c. 36)

16 10In Schedule 1 to the Civil Contingencies Act 2004, in Part 1 (list of Category
1 responders) for paragraph 9 substitute—

9 The Secretary of State, in so far as the functions of the Secretary of
State include responding to emergencies by virtue of —

(a) the Secretary of State’s functions under section 2A of the
15National Health Service Act 2006,

(b) the Secretary of State’s functions under section 58 of the
Health and Social Care Act 2012 in so far as it applies in
relation to Wales or Scotland, or

(c) arrangements made by the Welsh Ministers or Scottish
20Ministers under which the Secretary of State exercises on
their behalf functions in relation to protecting the public in
Wales or Scotland from disease or other dangers to health.

National Health Service Act 2006 (c. 41)National Health Service Act 2006 (c. 41)

17 The National Health Service Act 2006 is amended as follows.

18 25In section 9 (NHS contracts), in subsection (4) omit paragraph (j).

19 In section 71 (schemes for meeting losses and liabilities of certain health
bodies)—

(a) in subsection (2) omit paragraph (g), and

(b) in subsection (5) for “, (f) and (g)” substitute “and (f)”.

30National Health Service (Wales) Act 2006 (c. 42)National Health Service (Wales) Act 2006 (c. 42)

20 The National Health Service (Wales) Act 2006 is amended as follows.

21 In section 7 (NHS contracts), in subsection (4) omit paragraph (j).

22 In section 30 (schemes for meeting losses and liabilities of certain health
bodies)—

(a) 35after paragraph (b) insert “and”, and

(b) omit paragraph (e) and the preceding “and”.

Health and Social Care BillPage 374

National Health Service (Consequential Provisions) Act 2006 (c. 43)National Health Service (Consequential Provisions) Act 2006 (c. 43)

23 In Schedule 1 to the National Health Service (Consequential Provisions) Act
2006 (consequential amendments), omit paragraphs 257 to 259 (and the
cross-heading preceding them).

5Health and Social Care Act 2008 (c. 14)Health and Social Care Act 2008 (c. 14)

24 In section 159 (functions of Health Protection Agency in relation to
biological substances), omit subsections (2) to (6).

Health and Personal Social Services (Northern Ireland) Order 1991 (No. 194 (N.I. 1))

25 In article 8 of the Health and Personal Social Services (Northern Ireland)
10Order 1991 (health and social services contracts), in paragraph (2)(g) omit
paragraph (vi).

Section 61

SCHEDULE 8 Monitor

Membership

1 (1) 15Monitor is to consist of—

(a) a chair appointed by the Secretary of State,

(b) at least four other members so appointed, and

(c) the chief executive and other members appointed in accordance with
paragraph 2.

(2) 20The number of executive members must be less than the number of non-
executive members.

(3) In this Schedule—

(a) references to non-executive members of Monitor are references to the
members appointed in accordance with sub-paragraph (1)(a) and (b),
25and

(b) references to executive members of Monitor are references to the
other members.

The chief executive and other executive members: appointment and status

2 (1) The chief executive and the other executive members of Monitor are to be
30appointed by the non-executive members.

(2) A person may not be appointed as chief executive or as another executive
member without the consent of the Secretary of State.

(3) The non-executive members may not appoint more than five executive
members without the consent of the Secretary of State.

(4) 35The chief executive and the other executive members are to be employees of
Monitor.

Health and Social Care BillPage 375

Non-executive members: tenure

3 (1) A person holds and vacates office as a non-executive member of Monitor in
accordance with that person’s terms of appointment.

(2) A person may at any time resign from office as a non-executive member by
5giving notice to the Secretary of State.

(3) The Secretary of State may at any time remove a person from office as a non-
executive member on any of the following grounds—

(a) incapacity,

(b) misbehaviour, or

(c) 10failure to carry out his or her duties as a non-executive member.

(4) The Secretary of State may suspend a person from office as a non-executive
member if it appears to the Secretary of State that there are or may be
grounds to remove the person from office under sub-paragraph (3).

(5) A person may  not be appointed as a non-executive member for a period of
15more than four years.

(6) A person who ceases to be a non-executive member is eligible for re-
appointment.

Suspension from office

4 (1) This paragraph applies where a person is suspended under paragraph 3(4).

(2) 20The Secretary of State must give notice of the decision to the person; and the
suspension takes effect on receipt by the person of the notice.

(3) The notice may be—

(a) delivered in person (in which case, the person is taken to receive it
when it is delivered), or

(b) 25sent by first class post to the person’s last known address (in which
case, the person is taken to receive it on the third day after the day on
which it is posted).

(4) The initial period of suspension must not exceed six months.

(5) The Secretary of State may at any time review the suspension.

(6) 30The Secretary of State—

(a) must review the suspension if requested in writing by the person to
do so, but

(b) need not review the suspension less than three months after the
beginning of the initial period of suspension.

(7) 35Following a review during a period of suspension, the Secretary of State
may—

(a) revoke the suspension, or

(b) suspend the person for another period of not more than six months
from the expiry of the current period.

(8) 40The Secretary of State must revoke the suspension if the Secretary of State—

(a) decides that there are no grounds to remove the person from office
under paragraph 3(3), or

Health and Social Care BillPage 376

(b) decides that there are grounds to do so but does not remove the
person from office under that provision.

5 (1) Where a person is suspended from office as the chair under paragraph 3(4),
the Secretary of State may appoint a non-executive member as interim chair
5to exercise the chair’s functions.

(2) Appointment as interim chair is for a term not exceeding the shorter of—

(a) the period ending with either—

(i) the appointment of a new chair, or

(ii) the revocation or expiry of the existing chair’s suspension,
10and

(b) the remainder of the interim chair’s term as a non-executive member.

(3) A person who ceases to be the interim chair is eligible for re-appointment.

Payment of non-executive members

6 (1) Monitor must pay to its non-executive members such remuneration and
15allowances as the Secretary of State may determine.

(2) Monitor must pay or make provision for the payment of such pensions,
allowances or gratuities as it may, with the approval of the Secretary of State,
determine to or in respect of any person who is or has been a non-executive
member.

(3) 20If a person ceases to be a non-executive member and the Secretary of State
decides that there are exceptional circumstances which mean that the person
should be compensated, Monitor must pay compensation to the person of
such amount as the Secretary of State may determine.

Staff

7 (1) 25Monitor may appoint such persons to be employees of Monitor as it
considers appropriate.

(2) Employees of Monitor are to be paid such remuneration and allowances as
Monitor may determine.

(3) Employees of Monitor are to be appointed on such other terms and
30conditions as Monitor may determine.

(4) Monitor may pay or make provision for the payment of such pensions,
allowances or gratuities as it may determine to or in respect of any person
who is or has been an employee of Monitor.

(5) Before making a determination as to remuneration, pensions, allowances or
35gratuities for the purposes of sub-paragraph (2) or (4), Monitor must obtain
the approval of the Secretary of State to its policy on that matter.

Superannuation

8 (1) Sub-paragraph (2) applies where a person who is an active or deferred
member of a scheme under section 1 of the Superannuation Act 1972 is
40appointed as chair.

(2) The Minister for the Civil Service may determine that the person’s office as
chair is to be treated for the purposes of the scheme as service in the

Health and Social Care BillPage 377

employment by reference to which the person is a member (whether or not
any benefits are payable by virtue of paragraph 6(2)).

(3) Employment with Monitor is among the kinds of employment to which a
scheme under section 1 of the Superannuation Act 1972 can apply; and,
5accordingly, in Schedule 1 to that Act (in which those kinds of employment
are listed), at the end of the list of “Other Bodies” insert—

(4) Monitor must pay to the Minister for the Civil Service, at such times as the
Minister may direct, such sums as the Minister may determine in respect of
10any increase attributable to sub-paragraph (2) or (3) in the sums payable out
of money provided by Parliament under the Superannuation Act 1972.

Committees

9 (1) Monitor may appoint such committees and sub-committees as it considers
appropriate.

(2) 15A committee or sub-committee may consist of or include persons who are
not members or employees of Monitor.

(3) Monitor may pay such remuneration and allowances as it determines to any
person who—

(a) is a member of a committee or sub-committee, but

(b) 20is not an employee of Monitor,

whether or not that person is a non-executive member of Monitor.

Procedure

10 (1) Monitor may regulate its own procedure.

(2) The validity of any act of Monitor is not affected by any vacancy among the
25members or by any defect in the appointment of a member.

Exercise of functions

11 (1) Monitor must exercise its functions effectively, efficiently and economically.

(2) Monitor may arrange for the exercise of its functions on its behalf by—

(a) a non-executive member;

(b) 30an employee (including the chief executive);

(c) a committee or sub-committee.

Assistance

12 (1) Monitor may arrange for persons to assist it in the exercise of its functions in
relation to—

(a) 35a particular case, or

(b) cases of a particular description.

(2) Such arrangements may include provision with respect to the payment of
remuneration and allowances to, or amounts in respect of, such persons.

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Borrowing

13 (1) Monitor may, with the consent of the Secretary of State, borrow money
temporarily by way of overdraft.

(2) But subject to that, and subject to sections 145 and 146 (power to borrow for
5exercising functions in relation to financial assistance and power of
Secretary of State to lend etc.), Monitor may not borrow money.

Acquiring information

14 (1) Monitor may obtain, compile and keep under review information about
matters relating to the exercise of its functions.

(2) 10Where Monitor exercises the power under sub-paragraph (1), it must do so
with a view to (among other things) ensuring that it has sufficient
information to take informed decisions and to exercise its other functions
effectively.

(3) In exercising the power under sub-paragraph (1), Monitor may carry out,
15commission or support (financially or otherwise) research.

General power

15 Monitor may do anything which appears to it to be necessary or expedient
for the purposes of, or in connection with, the exercise of its functions.

Finance

16 (1) 20The Secretary of State may make payments to Monitor out of money
provided by Parliament of such amounts as the Secretary of State considers
appropriate.

(2) Payments made under sub-paragraph (1) may be made at such times and on
such conditions (if any) as the Secretary of State considers appropriate.

25Accounts of NHS foundation trusts

17 (1) Monitor must prepare in respect of each financial year a set of accounts
which consolidates the annual accounts of all NHS foundation trusts.

(2) The Secretary of State may, with the approval of the Treasury, direct
Monitor to prepare a set of accounts in respect of such period as may be
30specified in the direction which consolidates any accounts prepared by NHS
foundation trusts by virtue of paragraph 25(1A) of Schedule 7 to the
National Health Service Act 2006 in respect of that period.

(3) In preparing any consolidated accounts under this paragraph, Monitor must
comply with directions given by the Secretary of State with the approval of
35the Treasury as to—

(a) the content and form of the consolidated accounts;

(b) the methods and principles according to which the consolidated
accounts should be prepared.

(4) Monitor must send a copy of any consolidated accounts under this
40paragraph to the Secretary of State and, if the Secretary of State so directs,
the Comptroller and Auditor General—

Health and Social Care BillPage 379

(a) accompanied by such other reports or information as the Secretary of
State may direct, and

(b) within the relevant period.

(5) In sub-paragraph (4)(b), the relevant period is—

(a) 5in relation to consolidated accounts under sub-paragraph (1), such
period after the end of the financial year concerned as the Secretary
of State may direct;

(b) in relation to consolidated accounts under sub-paragraph (2), such
period as the Secretary of State may direct.

(6) 10Before giving a direction under sub-paragraph (5), the Secretary of State
must consult Monitor.

(7) The Comptroller and Auditor General must—

(a) examine, certify and report on any consolidated accounts sent under
this paragraph,

(b) 15if the Secretary of State so directs, send a copy of the report on the
accounts to the Secretary of State, and

(c) if the Secretary of State so directs, lay copies of the accounts and the
report on them before Parliament.

(8) Monitor must act with a view to securing that NHS foundation trusts—

(a) 20comply promptly with requests from it or the Secretary of State for
information relating to their accounts, and

(b) otherwise act so as to facilitate the preparation of accounts by the
Secretary of State.

(9) This paragraph does not apply to the financial year specified for the
25purposes of section 155(7) (which provides for the order that commences
section 155, which itself relates to the preparation of the accounts of NHS
foundation trusts, to specify the first financial year to which that section will
apply) or to the subsequent financial years.

Accounts of Monitor

18 (1) 30Monitor must keep proper accounts and proper records in relation to the
accounts.

(2) The Secretary of State may, with the approval of the Treasury, give
directions to Monitor as to—

(a) the content and form of its accounts, and

(b) 35the methods and principles to be applied in the preparation of its
accounts.

(3) In sub-paragraph (2), the reference to accounts includes Monitor’s annual
accounts prepared under paragraph 19 and any interim accounts prepared
by virtue of paragraph 20.

19 (1) 40Monitor must prepare annual accounts in respect of each financial year.

(2) Monitor must send copies of the annual accounts to the Secretary of State
and the Comptroller and Auditor General within such period after the end
of the financial year to which the accounts relate as the Secretary of State
may direct.

(3) 45The Comptroller and Auditor General must—

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