NHS reorganisation could cost £1bn in redundancy payouts

The bill for NHS redundancy payouts could reach £1bn in the service's most radical shake-up in a decade.

- Jon Ungoed-Thomas

Between 20,000 and 30,000 jobs are expected to be lost following the announcement last month that NHS England will be abolished.

Thousands of other jobs in the 42 integrated care boards in England and corporate service posts in NHS trusts will also be cut.

An Observer analysis of Department of Health and Social Care (DHSC) annual accounts shows nearly £450m has been paid in the past five years to staff in the department and its agencies who have taken redundancy. These include 94 employees who each received more than £150,000 in the year to 31 March 2024.

DHSC accounts reveal the average cost per employee of exit packages from it and its agencies that year was £48,840. Based on these figures, the next round of redundances could cost between £700m and £1.2bn.