Health and Social Care Bill

House of Commons

Session 2010 - 11
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Other Bills before Parliament

Health and Social Care Bill

Health and Social Care Bill
Schedule 6 — Part 1: transitional provision
275

      (2)
Sub-paragraph (1) does not apply to any power or duty of the Secretary of
State to make an order or regulations.
      (3)
Any rights acquired, or liabilities (including liabilities in tort) incurred, in
respect of the exercise by the Board of any function exercisable by it by virtue
of sub-paragraph (1) are enforceable by or against the Board (and no other
5
person).
Conditional establishment of commissioning consortia
3     (1)
Regulations may make provision authorising the Board to grant an initial
application where the Board is not satisfied as to the matters mentioned in
section 14C(2) of the 2006 Act.
10
      (2)
In the following provisions of this paragraph, any reference to the grant of
an initial application is a reference to the grant of such an application by
virtue of the regulations.
      (3)
The regulations may authorise the Board to impose conditions on the grant
of an initial application.
15
      (4)
The regulations may, in relation to a commissioning consortium established
under section 14D of the 2006 Act on the grant of an initial application,
authorise the Board—
(a)
to direct the consortium not to exercise any functions specified in the
direction;
20
(b)
to give directions to the consortium about the exercise of any of its
functions.
      (5)
If the regulations authorise the Board to give a direction mentioned in sub-
paragraph (4)(a), they may also authorise or require the Board to—
(a)
exercise any functions specified in such a direction on behalf of the
25
commissioning consortium;
(b)
arrange for another commissioning consortium to exercise those
functions on behalf of the consortium.
      (6)
The 2006 Act applies in relation to a commissioning consortium established
on the grant of an initial application with such modifications as may be
30
specified in the regulations.
      (7)
The regulations may, in particular, provide for the power in section 14Z6(7)
of the 2006 Act to be exercisable by the Board where a commissioning
consortium is failing or has failed to comply with any conditions imposed
by virtue of the regulations.
35
      (8)
The regulations may make provision requiring the Board to keep under
review any conditions imposed or directions given by virtue of the
regulations.
      (9)
The regulations must make provision authorising the Board to vary or
remove any conditions imposed, or to vary or revoke any directions given,
40
by virtue of the regulations.
     (10)
The regulations may make provision—
(a)
as to factors which the Board must or may take into account in
deciding how to exercise any power conferred on the Board by the
regulations;
45

Health and Social Care Bill
Schedule 7 — Monitor
276

(b)
as to the procedure to be followed by the Board before exercising any
such power.
     (11)
Sub-paragraph (12) applies if all the conditions imposed and directions
given in relation to a commissioning consortium are removed or (as the case
may be) revoked.
5
     (12)
In relation to any time after the day on which the consortium ceases to be
subject to any conditions or directions, the consortium is to be deemed to
have been established by virtue of an application granted under section 14C
of the 2006 Act.
Exercise of functions of consortia during initial period
10
4     (1)
This paragraph applies to a commissioning consortium if the application for
its establishment is granted under section 14C of the 2006 Act during the
initial period.
      (2)
The Board may direct that, during that period, the commissioning
consortium may only exercise such of its functions as are specified in the
15
direction.
Preparatory work by consortia during initial period
5     (1)
This paragraph applies to a commissioning consortium which is prevented
by a direction given by virtue of paragraph 3 or 4 of this Schedule from
exercising a function.
20
      (2)
The giving of the direction does not prevent the consortium 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 consortia during initial period
6
A Primary Care Trust may at any time during the initial period make
25
arrangements with a commissioning consortium under which the
consortium exercises any functions of the Primary Care Trust on its behalf.
Schedule 7
Section 51

Monitor
30
Membership
1     (1)
Monitor 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
35
paragraph 2.
      (2)
The number of executive members must be less than the number of non-
executive members.

Health and Social Care Bill
Schedule 7 — Monitor
277

      (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),
and
(b)
references to executive members of Monitor are references to the
5
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
appointed by the non-executive members.
      (2)
A person may not be appointed as chief executive or as another executive
10
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)
The chief executive and the other executive members are to be employees of
Monitor.
15
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
giving notice the Secretary of State.
20
      (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)
failure to carry out his or her duties as a non-executive member.
25
      (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
more than four years.
30
      (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)
The Secretary of State must give notice of the decision to the person; and the
35
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

Health and Social Care Bill
Schedule 7 — Monitor
278

(b)
sent 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.
5
      (6)
The 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.
10
      (7)
Following 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.
15
      (8)
The 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
(b)
decides that there are grounds to do so but does not remove the
person from office under that provision.
20
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
to 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—
25
(i)
the appointment of a new chair, or
(ii)
the revocation or expiry of the existing chair’s suspension,
and
(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.
30
Payment of non-executive members
6     (1)
Monitor must pay to its non-executive members such remuneration and
allowances 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,
35
determine to or in respect of any person who is or has been a non-executive
member.
      (3)
If 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
40
such amount as the Secretary of State may determine.

Health and Social Care Bill
Schedule 7 — Monitor
279

Staff
7     (1)
Monitor 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.
5
      (3)
Employees of Monitor are to be appointed on such other terms and
conditions 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.
10
      (5)
Before making a determination as to remuneration, pensions, allowances or
gratuities 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
15
member of a scheme under section 1 of the Superannuation Act 1972 is
appointed 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
employment by reference to which the person is a member (whether or not
20
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,
accordingly, in Schedule 1 to that Act (in which those kinds of employment
are listed), at the end of the list of Other Bodies insert—
25
“Monitor”.
      (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
any increase attributable to sub-paragraph (2) or (3) in the sums payable out
of money provided by Parliament under the Superannuation Act 1972.
30
Committees
9     (1)
Monitor may appoint such committees and sub-committees as it considers
appropriate.
      (2)
A committee or sub-committee may consist of or include persons who are
not members or employees of Monitor.
35
      (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)
is not an employee of Monitor,

whether or not that person is a non-executive member of Monitor.
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Health and Social Care Bill
Schedule 7 — Monitor
280

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
members or by any defect in the appointment of a member.
Exercise of functions
5
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)
an employee (including the chief executive);
(c)
a committee or sub-committee.
10
Assistance
12    (1)
Monitor may arrange for persons to assist it in the exercise of its functions in
relation to—
(a)
a particular case, or
(b)
cases of a particular description.
15
      (2)
Such arrangements may include provision with respect to the payment of
remuneration and allowances to, or amounts in respect of, such persons.
Borrowing
13    (1)
Monitor may, with the consent of the Secretary of State, borrow money
temporarily by way of overdraft.
20
      (2)
But subject to that, and subject to sections 131 and 132 (power to borrow for
exercising 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
25
matters relating to the exercise of its functions.
      (2)
Where 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.
30
      (3)
In exercising the power under sub-paragraph (1), Monitor may carry out,
commission 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.
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Schedule 7 — Monitor
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Finance
16    (1)
The 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
5
such conditions (if any) as the Secretary of State considers appropriate.
Accounts 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
10
Monitor to prepare a set of accounts in respect of such period as may be
specified 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
15
comply with directions given by the Secretary of State with the approval of
the 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.
20
      (4)
Monitor must send a copy of any consolidated accounts under this
paragraph to the Secretary of State and, if the Secretary of State so directs,
the Comptroller and Auditor General—
(a)
accompanied by such other reports or information as the Secretary of
State may direct, and
25
(b)
within the relevant period.
      (5)
In sub-paragraph (4)(b), the relevant period is—
(a)
in 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;
30
(b)
in relation to consolidated accounts under sub-paragraph (2), such
period as the Secretary of State may direct.
      (6)
Before giving a direction under sub-paragraph (5), the Secretary of State
must consult Monitor.
      (7)
The Comptroller and Auditor General must—
35
(a)
examine, certify and report on any consolidated accounts sent under
this paragraph,
(b)
if 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
40
report on them before Parliament.
      (8)
Monitor must act with a view to securing that NHS foundation trusts—
(a)
comply promptly with requests from it or the Secretary of State for
information relating to their accounts, and