6. WORKFORCE
6.1.6 What are the costs of Agenda for Change
in each year from 2006-07? Have these estimates changed, and if
so, can the changes be explained? (Q75)
Answer
1. Costs for 2005-06 to 2007-08 are
shown in table 75a, alongside projected pay bill for 2008-09 and
2009-10.
2. The funding envelope for Agenda for Change
(AfC) agreed with HM Treasury in 2002 extended to 2007-08 and
isolating costs after then is not possible as subsequent AfC funding
has been part of PCT baselines.
3. In order to give insight into the cost
of AfC it is necessary to compare expenditure across years on
a like basis.
4. The most appropriate currency of comparison
is earnings per full time equivalent. This is the before tax
pay that staff receive, so by definition it strips out the technical
changes such as changes to pensions contributions, and growth
in workforce.
5. The Department is unable to extend the
comparison it gave last year of earnings per full time equivalent
five years before AfC and five years after to six years. This
is because there was a step change in the methodology used to
calculate earnings between 1996-97 and 1997-98 which
means that the figures cannot be compared on a consistent basis.
6. The information in table 75b enables
average annual growth in earnings across key periods to be calculated:
— 1997-98 to 2002-03 (five years
prior to implementation of AfC): 5.0%.
— 2003-04 to 2008-09 (five years
since implementation): 4.9%.
7. This suggests that pay growth would have
been similar in a NHS without AfC as with it.
8. A pay bill projection for 2008-09 was
not included last year but is now. The pay bill projection for
2009-10 has been updated using latest available pay metrics
data.
Table 75a
ESTIMATED COST OF IMPLEMENTING AGENDA FOR
CHANGE
|
| | £ million
|
| Year | Cumulative total (1)
|
|
| 2005-06 | 950
|
| 2006-07 | 1,390
|
| 2007-08 | 1,780
|
|
| Source: |
NHS Pay, DH
|
| Footnotes: |
| 1. Totals rounded to nearest £10 million.
|
| 2. The funding envelope for Agenda for Change agreed with HM Treasury in 2002 extended to 2007-08. Subsequently, recurrent funding is part of baselines other than small adjustments for additional arrangements, for example the recently agreed unsocial hours.
|
| 3. Estimated pay bill figures in £ million (a) 2008-09—£29,983; (b) 2009-10—£31,399. Estimated pay bill figures are projections, and are subject to change.
|
Table 75b
NON-MEDICAL EARNINGS PER FULL TIME EQUIVALENT (£)
(1) AND GROWTH (%)
|
| |
| 1997-98 | 1998-99
| 1999-2000 | 2000-01
| 2001-02 | 2002-03
| 2003-04 | 2004-05(2),(5)
| 2005-06(2) | 2006-07(2)
| 2007-08(2),(3) |
2008-09(2),(4) |
|
| Qualified nursing |
| 20,830 | 21,042
| 22,329 | 23,427
| 24,733 | 25,702
| 26,342 | 27,697
| 28,784 | 29,861
| 31,106 | 32,763
|
| | Growth
| | 1.0%
| 6.1% | 4.9%
| 5.6% | 3.9%
| 2.5% | 5.1%
| 3.9% | 3.7%
| 4.0% | 5.3%
|
| Unqualified and support (6) |
| 9,318 | 10,430
| 11,451 | 11,609
| 12,256 | 12,899
| 13,394 | 14,563
| 15,528 | 16,531
| 17,669 | 18,611
|
| | Growth
| | 11.9%
| 9.8% | 1.4%
| 5.6% | 5.3%
| 3.8% | 8.7%
| 6.6% | 6.5%
| 6.7% | 5.3%
|
| Scientific, therapeutic and technical (7) |
| 18,393
| 19,054 | 20,181
| 21,268 | 22,378
| 23,138 | 24,136
| 25,189 | 26,062
| 27,664 | 28,211
| 29,583 |
| | Growth
| | 3.6%
| 5.9% | 5.4%
| 5.2% | 3.4%
| 4.3% | 4.4%
| 3.5% | 6.1%
| 1.8% | 4.9%
|
| Administrative and clerical |
| 12,143 | 12,715
| 13,327 | 13,795
| 14,588 | 15,376
| 15,665 | 16,738
| 17,745 | 19,076
| 19,959 | 20,930
|
| | Growth
| | 4.7%
| 4.8% | 3.5%
| 5.7% | 5.4%
| 1.9% | 6.8%
| 6.0% | 7.5%
| 4.5% | 4.9%
|
| Maintenance and works |
| 15,567 | 16,320
| 16,976 | 17,590
| 18,169 | 17,959
| 18,392 | 19,893
| 20,790 | 21,510
| 23,436 | 24,575
|
| | Growth
| | 4.8%
| 4.0% | 3.6%
| 3.3% | -1.2%
| 2.4% | 8.2%
| 4.5% | 3.5%
| 8.8% | 4.9%
|
| Ambulance staff |
| 19,914 | 21,528
| 21,566 | 22,442
| 23,492 | 24,792
| 26,511 | 33,606
| 37,750 | 29,974
| 32,509 | 34,241
|
| | Growth
| | 8.1%
| 0.2% | 4.1%
| 4.7% | 5.5%
| 6.9% | 26.8%
| 12.3% | -20.6%
| 8.3% | 5.3%
|
| Managers |
| 37,567 | 38,485
| 40,075 | 43,021
| 44,135 | 44,344
| 45,760 | 51,581
| 52,954 | 54,844
| 53,889 | 56,509
|
| | Growth
| | 2.4%
| 4.1% | 7.4%
| 2.6% | 0.5%
| 3.2% | 12.7%
| 2.7% | 3.6%
| -2.0% | 4.9%
|
| Other staff (8) |
| 12,573 | 17,044
| 18,124 | 18,968
| 19,980 | 20,968
| 21,628 | 23,173
| 24,275 | 25,399
| 26,537 | 27,904
|
| | Growth
| | 3.9%
| 6.3% | 4.7%
| 5.3% | 4.9%
| 3.1% | 7.1%
| 4.8% | 4.6%
| 4.3% | 5.2%
|
|
| Source: |
Workforce, DH
|
| Footnotes: |
| 1. Figures for NHS staff in England only and exclude agency.
|
| 2. Includes estimates for NHS foundation trusts.
|
| 3. 2007-08 figures updated to reflect 2007-08 actual expenditure data received autumn 2008. Growth includes hangover from staging settlement in the previous year. This results in an additional 0.6% increase in earnings for the year above that due to pay uplift and drift.
|
| 4. Figures are projections and subject to change once 2008-09 financial actuals are received.
|
| 5. In 2004-05, responsibility for the cost of pensions indexation shifted from HM Treasury to NHS employers.
|
| 6. Unqualified nursing, HCA and support includes ancillary staff (eg cleaners and porters).
|
| 7. Includes AHPs, PAMs, healthcare scientists and other groups working in scientific, therapeutic and technical areas.
|
| 8. This total includes a small number of other staff (less than 0.5% of NHSPRB workforce) who do not fit into any of the above sub-groups.
|
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