The Backdoor Privatisation of our NHS


Wholly owned / subsidiary / spin off / arms length companies are one and the same thing – all recently created by cash-strapped hospital trusts to lower VAT payments – but also PRIVATISING thousands of support staff in the process.
Staff members carry out a crucial role in providing a range of non-clinical estates and facilities services such as portering, transport, catering, office, laundry, security, waste management – all integral to the running of our NHS…and now privatised.
Privatisation of our NHS by the back door? Undoubtedly. Part of the NHS on paper, wholly-owned by a NHS Trust – but essentially a separate business. Non-NHS contracts are common-place, often with inferior terms and conditions.  This is happening all over the country – what we see in the NE is another tip of a very large iceberg – and part of a very slippery slope.
“A wholly owned subsidiary is an organisation set up at arm’s length but still owned by the trust. It means that those services currently provided in-house will be provided by a separate company that will employ staff who currently work for the NHS.
Trusts claim that money will be saved by exploiting a tax loophole, but the major savings will come from employing new staff on non-NHS terms and conditions with no access to the NHS Pension Scheme.
….this is a form of backdoor privatisation, with direct consequences for healthcare staff and potentially damaging ramifications for the NHS.”
Excerpt from Unison  Wholly Owned Subsidiaries in the NHS

Frame 12 Subsidiary Companies-page0002

Links 
In the North East – NTW NHS Trust (March 2017)  Proposal to establish an NTW Subsidiary Company
Expanatory article by Caroline Molloy, Our NHS (February 2018) – refers to NTW and Gateshead  Are cash-strapped hospitals walking into a trap that could cost the NHS its family silver?
NHS Support Federation – refers to NE Trusts  Back door privatisation: the rise of the spin-off company in the NHS
KONP briefing article (March 2018)No to Subsidiary Companies in the NHS
Links from Unison NHS Subsidiary Companies
Statement (March 2018) – plus see useful list of outstanding questions at the end of the document  Gloucestershire NHS “SubCo” approved
Report from NHS Support Federation  The Rise of the Spin-Off Company in the NHS
Situation in Wigan (February 2018)  Unison report
Liz Twist Early Day Motion (January 2018)  EDM 802
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