Wholly-owned subsidiary companies
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.”
Statement (March 2018) – plus see useful list of outstanding questions at the end of the document Gloucestershire NHS “SubCo” approved
Situation in Wigan (February 2018) Unison report
Liz Twist Early Day Motion (January 2018) EDM 802