The £1bn Illusion

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1. The £1bn Illusion

Ministers hailed “nearly £1bn” saved by cracking down on agency spend, urging trusts to eradicate agency use altogether.

The headline ignores where the work went. NHS spend has shifted into banks (£5.8bn), overtime, MSP contracts, and insourcing rather than vanished. Many of these routes cost the same or more than agency once premiums, pensions, and admin layers are included. Suppressing agency spend may look good on a spreadsheet, but it strips away the flexibility hospitals and community services rely on when demand surges.

This isn’t saving, it’s cost-shifting. Patients don’t feel savings on spreadsheets; they feel longer waits, cancelled lists, and exhausted staff. Taxpayers don’t see value when negligence payouts climb into the billions. Agency cuts may deliver a headline, but they don’t deliver care.

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