The following article was published by the Romford Recorder on 20th April 2012. You can view the original here: www.romfordrecorder.co.uk/home/e-edition
Cash spent on layoffs only for staff to be rehired
The NHS reorganisation has already cost Havering £16million, say new figures.
The findings come from a leaked government "business case" for the new Health and Social Care Act and confirms what the changes will cost.
The cost of NHS redundancies in every community during the first year of the legislation's introduction is also listed.
Havering's NHS has already been forced to spend £1,361,000 laying off staff – only for many expected to be re-employed elsewhere in the system.
These costs have come about during the first phase of redundancies and more are expected to follow in the summer.
The figures were released by the Labour Party.Dagenham and Rainham MP Jon Cruddas has hit out against the figures.
He claims that the top down reorganisation of the NHS will further stretch an already overburdened health service.
He said: "People will want to know why our local NHS has been forced to waste more than £1.3million on payouts only for many of the same staff to be reemployed in the new NHS organisations. This is only the first wave of redundancies. More are expected later this year and next as part of the government's reckless NHS reorganisation that will cost more than £16million in our area alone."
Mr Cruddas added: "With Queen's Hospital already struggling to cope, King George Hospital being threatened with closure and our entire local health service being pressed to breaking point, this reorganisation isn't just a danger to our NHS, it's placing lives at risk."
A spokesman for the NHS North East London and the City said: "The government has committed to making savings of £20billion in the NHS by 2014/15.
"Havering has played its part in this and, in our area of London, we have seen a reduction in NHS management staff costs of 46 per cent."