Bath and North East Somerset Council is considering appealing to the government to block what it describes as “privatisation by the back door” at the Royal United Hospital (RUH) in Bath. The NHS trust managing the hospital plans to transfer hundreds of its “bank” workers—those who take flexible shifts to cover absences and fluctuating demand—to a private company.
Hospital management argues this move offers better value for money and increases the availability of bank staff. However, campaigners and local councillors fear it will harm staff conditions and 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.”
The RUH did not initially inform the council of the transfer. Instead, former RUH governor Nicola James and Unison branch secretary Baz Harding-Clark raised concerns publicly at a council meeting on May 14. Harding-Clark warned: “This is privatisation by stealth. Nobody is openly announcing it but, step by step, staff and functions are being moved out of the NHS into private hands.” He described the bank staff as “the glue that holds our service together.”
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The plan involves RUH joining with Swindon’s Great Western Hospital and Salisbury hospital, forming the BSW Hospitals Group, to transfer bank staff to the private company Pulse starting August 1. Currently, about 2,500 people work on the RUH bank, many of whom also hold other NHS roles. Approximately 400 workers are bank-only employees on zero-hour contracts.
While pay rates are not expected to change, bank-only staff would lose the NHS employer pension contribution of 23.7%, receiving only about 6% from the private employer, potentially lowering their retirement benefits by tens of thousands of pounds. James and Harding-Clark warned that this could lead experienced staff to leave rather than transfer, potentially harming patient care.
Hospital representatives defended the plan before the council’s scrutiny panel on May 18. RUH managing director John Palmer said that combining the bank services of the three hospitals would help prevent severe staff shortages during winter. Although the group considered keeping the bank within the NHS, outsourcing is projected to save £3.3 million in employer national insurance contributions alone, with additional savings expected from reduced pensions and management costs. Palmer acknowledged the hospital faces a £38 million saving target on a £600 million budget and described the decision as part of a rigorous evaluation process.
Despite the hospital’s assertions, some councillors expressed concern over transparency and adherence to rules protecting NHS staff pensions under the “fair deal.” BSW Hospitals Group’s Jude Gray apologized for the lack of prior notification to the council but argued no legal rules were broken since bank-only workers are classified as “workers” and not “employees.”
Council members such as Toby Simon and Liz Hardman questioned the spirit of the fair deal agreement and whether the council had been properly informed of a “substantial variation.” Chair of the scrutiny panel, Dine Romero, expressed hopes that further occurrences could be prevented but recommended escalating the decision to the Secretary of State for review.
Bath and North East Somerset Council has the authority under Section 66 of the NHS Act to request government intervention. The scrutiny panel unanimously supported referring the matter to the Secretary of State. Council chair Shaun Stephenson-McGall indicated that if necessary, the council could convene an emergency meeting to do so.