Employers urged to override spending limits on agency nurses if rules lead to unsafe staffing

Healthcare watchdogs back the introduction of caps on how much agency staff are paid – but admit they risk creating staff shortages in hospitals.

The Department of Health is seeking to cap on the total amount NHS providers in England can pay per hour for agency nurses and other healthcare professionals.

Monitor and the Trust Development Authority say any potential staff shortages resulting from the cap could be mitigated by introducing the caps gradually and allowing trusts to override the rules if staffing numbers fall to unsafe levels.

They make their conclusions in an impact assessment report, part of a consultation into the proposals. 

The limits on fees for nurses will start at 100% above Agenda for Change (AfC) rates from November and could save employers £110 million a year.

By next April, the proposal is for the cap to be lowered to 55% above AfC rates and while the nursing savings would remain the same, the report said total savings would increase to £370 million due to a £210 million reduction in the cost of using locum doctors.

The report said there could be risks of staff shortages in specialities where there are existing shortages, in geographically isolated locations, and in trusts with poor reputations. 

In September, a ceiling was introduced to limit the total amount trusts are permitted to spend annually on temporary nursing staff.

The consultation runs until November 13 and if approved the caps will come into force on November 23.

Click here for more information about the consultation.