Select Committee on Public Accounts First Report


1 Sickness absence has declined but remains high

1. Following the Committee's earlier examination of the management of sickness absence in the Prison Service in 1999, the Prison Service undertook to tackle the culture of absenteeism and reduce its average sickness absence rate from around 15.9 days in 1997-98 to 9 days by 2002-03. By 2003-04, sickness absenteeism had fallen to 13.3 days, and for the first two months of 2004-05, to 12.5 days. The Prison Service recognised that its target of 9 days was overly optimistic. Sickness absence had declined over the past five years but there was still some way to go to achieve the nine days target, which was unlikely to be attained in the foreseeable future.[3]

2. Ten prisons each lost an average of 20 or more days sickness absence per member of staff per year in 2002-03. Liverpool and Hindley had average rates in excess of 20 days at April 2004 (Figure 1), together with Haslar, which had previously reported average sickness absence of less than 20 days. Sickness absence at the other eight establishments with sickness absence rates in excess of 20 days in 2002-03 had reduced, in part due to the redeployment by the Prison Service of some of its better Governors to manage establishments struggling with the highest levels of sickness absence.[4] Figure 1: Three establishments had average rates of sickness absence in excess of twenty staff days per staff member as at April 20041
Prison2 April 04
Haslar 24.44
Liverpool 22.20
Hindley 21.46
Brixton 19.60
Holloway 15.39
Edmunds Hill 15.27
Eastwood Park 13.19
Onley 12.67
Risley 11.81
Kingston 10.71
Rochester 7.90


Notes:

1. The sickness absence rate for the month of April was multiplied by 12 to give an annual rate.

2. Of the eleven establishments shown in this table, all except Haslar reported average sickness absences of 20 days per person in 2003 (C&AG's Report, Figure 12 and footnote 18).

Source: Prison Service data (Ev 15)

3. Around one third of Prison Service staff took no sick leave in 2003-04 (Figure 2), a further third took up to 5 days sick leave and the remaining third took more than 5 days. The Prison Service said that 3,020 current staff members had exceeded the period for sick pay at full salary, having had more than 6 months sickness absence in the past four years. Overall, 2,700 of the Prison Service's 45,400 staff accounted for half of all sickness absence taken in 2003-04.[5] Figure 2: Around 13% of prison staff took more than 20 days sick leave during 2003-04



Source: Prison Service data (Ev 18)

4. The Prison Service will need to deal with cases of longer term sickness and recurring absenteeism if it is to achieve further reductions in the number of working days lost through sickness. These cases can be complex, time consuming and resource intensive to manage as they may arise from the demands of a stressful and physically demanding job. Some cases had been resolved by phasing the employee's return to normal duties. The Prison Service had implemented the Committee's previous recommendation, albeit belatedly, to manage more rigorously those whose attendance record was poor, including using dismissal rather than offering medical retirement.[6]

5. Terminating an individual's contract on the grounds of medical inefficiency was quicker than seeking a medical retirement and was also more cost effective. There were however significant costs attached to terminating contracts which attracted average compensation payments to staff of around £17,000 in recognition of their illness and for the loss of their career. Compensation of up to two years' salary might be payable for staff with long service, although the rate could be reduced where there had been negligence or non co-operation by the employee with medical treatment and rehabilitation (Figure 3). The Prison Service had calculated that dismissal had saved £22 million in pensions, but at a cost to the Prison Service of £5 million. In all, the Prison Service dismissed 294 people on long term sick leave in 2003-04 for medical inefficiency.[7]Figure 3: Dismissals for medical inefficiency increased in 2003-04
Dismissals on grounds of medical inefficiency 2001-02 2002-03 2003-04
Without compensation 51 5891
With compensation 100 141203
Total 151 199 294


Source: Prison Service data (Ev 18)

6. The tighter regime introduced by the Prison Service had resulted in its sickness absence rates moving closer to those for the Scottish and Irish Prison Services and private prisons. The average rate[8] in the Scottish Prison Service for 2002-03 was the equivalent of 12.9 working days and in the Irish Prison Service 14.5 working days, compared to 12.5 days per employee in privately managed prisons. The Prison Service's own rates continued to be higher, in part because of the different age profiles of staff in the Prison Service and private prisons, and differences in entitlement to paid sick leave, in particular that some private prisons do not pay staff for their first 3 days' sick leave. The Prison Service was considering possible changes to its regulations covering terms and conditions of service. It was also considering the scope to improve its assessment of potential employees' suitability for employment, based upon the applicant's previous employment history. The Prison Service recognised, however, that any major changes to its sick leave entitlement policies would be controversial.[9]


3   Qq 4-5, 83-84 Back

4   Q 12 Back

5   Q 47; Ev 18 Back

6   Q 41 Back

7   Qq 62-63; Ev 18 Back

8   The rate for England and Wales is based on working days lost, whereas the Prison Service in Ireland and Scotland records calendar days. To obtain an approximate measure on a comparable basis, the rates for the Irish and Scottish Prison Services were divided by 7 and multiplied by 5 to provide an approximate measure on a comparable basis.  Back

9   Q 2 Back


 
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Prepared 18 January 2005