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Government Introduce New Initiative to Reduce Agency Pay Rates

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As of the 23rd November 2015, the Government have introduced a new initiative to propose caps on pay rates that are currently paid to agency workers. The price caps have been introduced in an attempt to reduce agency worker rates closer to the national agenda for change pay scale. The NHS have recently published figures of overspending nearly 1.6 billion pounds and therefore the Government have realised that they need to make attempts to reduce this deficit. They believe that by reducing agency expenditure, this will allow NHS trusts to raise the level of their clinical quality and an improved environment for staff and patients alike. The government expect to reduce this deficit by 1 billion pounds over the next 3 years.

The price caps will apply to all NHS Trusts across the UK excluding Ambulance trusts. They will apply to all too all staff groups covered by national pay scales including medical staff, nursing and midwifery staff, all other clinical staff and non-clinical staff.

The government have introduced a 3 stage process to reduce the rates over the next 4 months. The first stage came into effect as of the 23rd November 2015 which also applies to all agency contractors that are in current placements. Subject to monitoring, agency rates will be reduced again on the 1st February 2015 and then again on the 1st April 2015. By April 2015, the aim of the Government is to try and reduce rates so that agency workers are not rewarded more than a permanent member of staff.

Despite these changes, Service Care Solutions currently have Government Approved Framework rates in place with a number of NHS trusts across the UK. Therefore we shouldn’t see much of a dramatic difference in pay rates for contractors running placements through our agency come the 1st April 2015. 
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