NHS Pay Modernisation in England: Agenda for Change - Public Accounts Committee Contents


Examination of Witnesses (Questions 60-79)

DEPARTMENT OF HEALTH

2 MARCH 2009

  Q60  Geraldine Smith: One of the aims was to improve equal opportunity and diversity in the Health Service. Do you think Agenda for Change has achieved this?

  Mr Nicholson: Yes.

  Ms Chapman: There is evidence that there have not been the sorts of improvements yet that we would want to see on that. I think it is probably a bit like the KSF, where there is now a platform on which there will be real opportunities to improve that. Having said that, we looked at the report that has come out recently that suggested that our rates were running underneath the national average in terms of the level of discrimination that people were reporting, so my sense is that we have made progress, there is more to be done and we have now got a platform to enable us to do that.

  Mr Nicholson: Where we have made progress, I think, is in terms of low pay. One of the things that was particularly relevant to Agenda for Change was tackling some of the groups, not the qualified nurses but the people who worked as nursing assistants in support roles. I think they got a comparatively greater benefit from Agenda for Change and I think that has helped the workforce considerably.

  Mr Griffin: I want to mention one small matter. The non-professional grade particularly saw the biggest increase in their pay across the professions and is also perhaps where the biggest change in terms of career thresholds, which takes them up through unqualified status into qualified roles, has been achieved.

  Q61  Geraldine Smith: Can I ask finally about the claims for discrimination around equal opportunity? What is happening with those? Where are we up to on that?

  Ms Chapman: Those are being heard at the moment. We are waiting for the outcome of those as we speak.

  Q62  Mr Burstow: I want to ask a couple of questions around Box 3 on page 11, which sets out the success criteria. Just running down this list, can you tell me whether in each case there was a baseline set against which you could measure success?

  Mr Nicholson: I will do my best on all of those. More patients being treated more quickly. We did the calculation at the time as to the extra number of patients you would need to treat to deliver the waiting time guarantees at the time, which were, I think, six months for in-patient, three months for out-patient. We calculated the volume so we could say whether we had delivered both the volumes and the waiting times.

  Q63  Mr Burstow: So there was a baseline against which you could measure Agenda for Change?

  Mr Nicholson: And there was a baseline on which that could be done. In terms of higher quality care, we set out our improvements both in terms of improvements in cancer and coronary heart disease care targets and in terms of the delivery of improved outcomes for both of those.

  Q64  Mr Burstow: Can you say that there was something against which you could say, "This is our starting point and this programme will result in these changes"?

  Mr Nicholson: I have not got a document with it all in but I am unaware of where this is all written down in that way. I am just going through it because I think they were all done. In better recruitment and retention there was a whole series, as we know. Vacancy rates were running at about 3.5% and we knew we had to get them down to 0.5% in order to deliver the volumes for the capacity that we needed. As for better team working and breaking down barriers, I do not think there was a specific measure for that, but what we did know in order to deliver the changes we needed in terms of cancer services to make sure we had multidisciplinary teams operating in breast, colon and other cancers, so we worked to do that and we have delivered all of those multidisciplinary teams. We can give lots of examples of innovation in deployment of staff but we think we have a fair pay—

  Q65  Mr Burstow: I think the point I am trying to get at—

  Mr Nicholson: No, I understand what you are saying.

  Q66  Mr Burstow:— is that you can give lots of examples of how it has changed and you have given many answers to members of this Committee saying you have done that, but one of the roles this Committee has is looking at whether we have got value for money out of the process you have gone through and I am not clear from what you said that there were baselines set against which you could evaluate whether this programme had been the contributory cause of improvements.

  Mr Nicholson: This was not set out as a programme with specifically identified success criteria that were measured independently of everything else that we were doing. I have said that four times now, and that is true.

  Q67  Mr Burstow: And would you acknowledge that with the benefit of hindsight that is something that if you were setting out on this again you would not do it that way?

  Mr Nicholson: No.

  Q68  Mr Burstow: So you would not set criteria again?

  Mr Nicholson: We set off on a whole series of significant changes to the NHS all at the same time. If you are saying to me could we in hindsight have identified the totality of that at the beginning and put it through, I would say that we did through the NHS Plan. We set out in the NHS Plan what it was we were trying to achieve, which was more staff, better paid, all of those sorts of things.

  Q69  Mr Burstow: The reason I started this question was that the thing that struck me as I went through this report was simply that on a number of occasions data have not been collected. On a number of occasions when data have been collected, albeit by other agencies, there is not the evidence to support the contention of these success criteria having been delivered. You have been able to give us lots of anecdotal evidence but not concrete evidence. Is that a fair characterisation of it?

  Mr Nicholson: No, I do not think what I have just described is anecdotal evidence. The fact that we have reduced avoidable deaths through coronary heart disease, the fact that we have delivered a whole series of significant reductions in the waiting times for patients and access to services generally are not anecdotes. They are substantiated in the real world by patients.

  Q70  Mr Burstow: And you can substantiate the link directly to the general changes in the delivery of that?

  Mr Nicholson: This is the dilemma that we have. The judgment was, would we spend a great deal of time trying to get that or would we get on with it? We decided jointly with the NHS that it was better to look at the thing in the round and that is what we have done.

  Q71  Mr Burstow: In answer to one of the questions Mr Bacon asked you said there was a report on productivity due this month.

  Mr Nicholson: Yes.

  Q72  Mr Burstow: When might this Committee be sent a copy of that report?

  Mr Nicholson: When ministers have looked at it presumably it will be published. I do not think it is a secret document.

  Q73  Mr Burstow: Sometimes things take a little time after the minister has studied them before they do get published. How soon do you think it will be published after ministers have looked at it?

  Mr Nicholson: I have not seen it so I genuinely do not know, but I will make sure the Committee gets it as soon as I can.[2]

  Q74  Mr Burstow: Just coming back to this point about costs, paragraph 2.21 says that data were not collected that would be necessary to see whether the anticipated savings could be realised. Why, given that you had put in cost assumptions of what you would save, was there no data collection put in place to prove that you had done that? I would have thought that was a fairly obvious thing to do.

  Mr Nicholson: The rhetorical question is, what data would you collect? With almost everything that was happening there was a multitude of things happening to it, so if you take, for example, the reductions in waiting times—

  Q75  Mr Burstow: But you said there was an estimate in the programme. You must have made some assumptions to come up with that estimate. Surely you then instruct a data collection that would underpin those assumptions.

  Mr Nicholson: As I have said, I think people made the best assessment they could make at the time about what the impact of it would be, but it was essentially a top-down assessment. If you look at something like delivering a reduction in the waiting time to within four hours for patients in A&E, we have been remarkably successful at getting it down to four hours. Some of that related to Agenda for Change because some of that was done through organising job roles and particular jobs to do particular things in diagnostics which would not have been available, but how much of the four hours would you attribute to Agenda for Change as opposed to increasing numbers?

  Q76  Mr Burstow: That is why you are here; that is why I am asking the question.

  Mr Nicholson: We made the assessment that it was better to look at the totality of all of the things, the way they were interacting, ie, the quality of the way they were implemented together as a measure, as opposed to identifying each individual one.

  Q77  Mr Burstow: One of the success criteria is around fair pay and the report draws some comparisons with the other two sets of pay modernisation at work which were put in train around the same time, particularly the consultants' contract, and this Committee has published reports on that in the past. It suggests that the consultants' contract added 6% to the annual pay bill for consultants. We have established here that that is nowhere near the percentage added to the pay bill for general changes significantly lower down. What does that send out as a message around fairness and what does it say about the difference in attitudes to different types of staff within the NHS?

  Mr Nicholson: In each of the groups of staff we were dealing with quite different things. If you take the consultant contract, for example, there was no system of measurement and organisation of time for consultant staff in the NHS up to the new consultant contract, so not only were we negotiating something going forward; we were also essentially putting right something that had been there since 1948, and the impact of getting that right for the future will be absolutely enormous. I do not think looking at straight percentages between one group and another necessarily identifies the fairness of it.

  Q78  Mr Burstow: But, again, because we have no metric or baseline against which we can judge fair pay, that is an answer that does not stack up against anything we can measure.

  Mr Nicholson: There is a whole set of legal cases going on about fair pay at the moment, is there not? Our judgment is that the pay modernisation scheme is a fairer way of paying people and no doubt that will be contested in the courts.

  Q79  Mr Burstow: In conclusion, it strikes me that in terms of 1.1 million workers, making this simplification was a very good thing. The thing that has disappointed me from being a member of this Committee is that when it comes to measuring whether it has had a real effect you can offer us assertions and you can offer us examples but linking them back to this as the real cause of those changes is not there, is it? There is no audit trail on deliveries.

  Mr Nicholson: That is because pay modernisation is not an end in itself, it is an enabler, it helps you do things. In itself it does nothing, all it does is add to the pay. It is the way in which you use the staff and the way in which they are deployed.



2   http://www.york.ac.uk/inst/che/pdf/rp47-pdf Back


 
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