Bath and North East Somerset Council is poised to appeal to the government to halt what it calls “privatisation by the back door” at Bath’s Royal United Hospital (RUH). The NHS trust managing the hospital plans to transfer hundreds of its “bank” workers—staff who take flexible shifts to cover absences or increased demand—to a private company.
Hospital management argues the move offers better value and access to more temporary staff. However, campaigners and councillors warn it risks undermining conditions for staff and the quality of patient care.
Council leader Kevin Guy criticized the plan, stating, “Privatisation through the back door is short termism. It will not save the NHS money. Actually, it will cost more in the long run.”
READ MORE: Long Delays on M5 South West as Bank Holidaymakers Head to Region
READ MORE: Man Suffers Broken Jaw After Altercation Over Table at Weston-super-Mare Bar
The RUH did not inform the council beforehand about the transfer plan. Former RUH governor Nicola James and Unison branch secretary Baz Harding-Clark raised concerns in a council meeting on May 14, describing the move as “privatisation by stealth.” Harding-Clark emphasized the essential role of bank staff, calling them “the glue that holds our service together.”
The RUH, together with Swindon’s Great Western Hospital and Salisbury’s NHS trusts—part of the BSW Hospitals Group—intends to transfer its bank staff to private provider Pulse on August 1. Approximately 2,500 staff work in the hospital’s bank, most of whom also hold separate NHS contracts. Nearly 400 workers on zero-hour contracts work exclusively bank shifts.
While pay rates will remain unchanged, bank-only workers stand to lose the NHS employer pension contribution of 23.7%, replaced by about 6% from the private company. This significant reduction could cost healthcare workers tens of thousands in retirement income.
James and Harding-Clark warned that some staff might refuse the transfer, risking loss of experienced personnel crucial to patient care. Nonetheless, RUH managing director John Palmer defended the plan before the council scrutiny panel on May 18.
Palmer explained that merging the bank staff across the three hospitals would help prevent shortages during winter peaks. Outsourcing is projected to save £3.3 million across the trusts from employer national insurance contributions alone, alongside further savings from lower pensions and management costs.
Acknowledging public concern, Palmer said, “Our job is to look at the whole series of criteria and try and make the best decision,” adding that the RUH currently faces a £38 million budget shortfall on its £600 million budget. He described the decision-making process as “vigorous” and expressed willingness to be held accountable for any mistakes.
Although “fair deal” rules typically protect NHS staff pensions during privatisation, the hospital did not inform the council of the staffing change, as the 400 bank-only workers are legally classified as “workers” rather than employees. Jude Gray, BSW Hospitals Group chief people officer, apologized for the lack of notification but maintained no rules were breached.
Councillors expressed frustration. Panel member Toby Simon said, “It’s not in the spirit of the fair deal agreement,” while Liz Hardman criticized the RUH for failing to report a “substantial variation.”
Scrutiny panel chair Dine Romero called for the matter to be escalated to the secretary of state for health. The council’s NHS Act powers enable it to formally request government intervention, a step the scrutiny panel members unanimously supported. Council chair Shaun Stephenson-McGall indicated the possibility of an emergency council meeting to refer the issue to central government if necessary.