Joint Statement on the Health & Care Bill to unite campaigners, trade unions and opposition parties
The Health and Care Bill tabled in early July is deeply flawed and cannot be
supported. It says virtually nothing about the key issue of the workforce, barely
mentions social care, and does not address any of the major problems confronting
our health and care systems after a decade of austerity funding and decades
of privatisation and fragmentation into markets and outsourced contracts. It
will create disruption for years on end at a time the NHS needs to focus on
recovery after Covid.
We welcome the decision of Labour and opposition MPs to oppose the Bill at second
reading and to continue to fight it through amendments in the Commons and the
Lords that tackle the main negative elements of the Bill.
Amendments that succeed can limit any damage that might be done by an unamended
Bill, while the arguments used against amendments that do not succeed can help
us highlight the implications and the motivation behind the Bill.
While many of us have additional concerns about the way the Bill would be used
and its wider consequences in the light of existing and proposed NHS England
policies, amendments need to distinguish between what is in the Bill on the
one hand, and issues that may have arisen in, or been thought to underly previous
NHS England proposals and the White Paper.
Key issues that we oppose in the Bill and on which we support amendments are:
• Competition, procurement and privatisation
• Duties of the Secretary of State (SoS)
• Strengthening local accountability
• Foundation Trusts
• Payment scheme
Competition Procurement and Privatisation
The bill removes section 75 of Andrew Lansley’s Health and Social Care
Act 2012 and associated regulations, which trade unions, campaigners, Labour
and opposition parties opposed and fought to defeat. This partial repeal in
itself does not abandon the market system entrenched by Lansley. Nor does it
prevent or reverse privatisation:
• It doesn’t establish the NHS as the default provider when existing
contracts come to an end.
• Nor does it prevent competitive tendering, or the extension of “framework
contracts,”
through which contracts can be awarded without competition or tender to private
companies (or other providers) from a pre-approved list. The Bill’s repeal
of the 2015 Public Contracts Regulations would leave little or no protection
against more crony contracts awarded without proper oversight.
• Nothing in the Bill prevents more trusts – or ICBs – setting
up subsidiary companies to dodge taxes, evade scrutiny or undermine terms and
conditions of staff.
• Even the partial repeal of Section 75 does not extend to important non-clinical
services which should be delivered by NHS staff – cleaners, porters, caterers
and others. These services should not be fair game for more outsourcing.
The Provider Selection Regime proposed by NHS England has also come under considerable
criticism. Although this is not part of the Bill it is the one that will shape
the resulting regulations that will apply unless challenged. That’s why
one key amendment must require that no contract can be
awarded to a private company unless there has been a process as least as thorough
as the Public Contracts Regulations that currently apply.
Amendments will be Seeking tighter rules to prevent cronyism and break out of
the excessive secrecy of the current system by making all NHS business and decision-making
fully open and transparent, with full declaration of conflicts of interest,
and no commercial confidentiality exceptions – as well as a tough regime
requiring ICBs to justify the award of any actual contracts outside NHS.
Amendments will demand that all private contracts must be subject to strong
contract management, and with no competition on price.
Eliminating corporatisation of primary care also requires amendments to prevent
the abuse of APMS contracts. As these expire, GPs should be brought back onto
standard contracts, closing a gateway through which private firms like Virgin
and Centene have been able to buy in to primary care.
Duties of SoS
Those who campaigned against the Lansley Bill will be in favour of the Secretary
of State being held directly responsible for the NHS, as was clear before 2012.
But not all of the many new powers proposed in the Bill are appropriate, and
there must be proper parliamentary oversight of their use.
Making every NHS organisation inform the Secretary of State every time they
think about changing a service would create a bureaucratic nightmare, and new
powers for him to intervene on reconfigurations runs the risk of politically-driven
decisions being imposed on local services.
Nor are the new Secretary of State powers coupled with the restoration of the
pre-2012 duties of the Secretary of State. An amendment will be moved that would
reverse this aspect of the 2012 Act, and return to the original wording. Given
the new structure of the NHS, the same duties should also apply to NHS England
and ICBs, through which the SoS carries out these duties
Loss of local accountability
The Bill follows five years of top-down pressure to merge Clinical Commissioning
Groups (CCGs) created by the Lansley Act, and it abolishes the CCGs that remain.
It will leave England with just 42 ICBs – the fewest “local”
bodies since NHS reforms began almost 50 years ago.
Although there is a mandatory seat on each ICB for local government, the reduced
number of decision-making bodies significantly reduces local accountability
and local voice on future policy, while extending central powers of the Secretary
of State and NHS England, including a new power to intervene and initiate a
reconfiguration of services – which must be opposed.
The Bill would allow chairs of the 42 ICBs to be appointed by NHS England subject
to approval by the Secretary of State – but only allow their removal if
the Secretary of State agrees. This means ICB chairs, who under the Bill would
have considerable powers, would be accountable only upwards, but not at all
to local councils, communities and constituencies. Instead amendments are needed
to require ICB chairs to be ELECTED in a system analogous to Mayors or Police
and Crime Commissioners.
All other ICB non-executives would be appointed by the chair under the Bill,
with no fair process respect for diversity, or independent overview.
The Bill gives no voice to patients on ICBs, but could potentially allow people
associated with the interests of private companies to sit on ICBs and Integrated
Care Partnerships. This threat of increased influence of private providers on
NHS decision making must be explicitly ruled out.
The narrow composition of ICBs creates the danger that strong vested interests
such as a large Foundation Trust could dominate – and services such as
mental health or community health could be pushed to the side lines. Directors
of Public Health are not core members of ICBs. The pledge in the NHS Constitution
that staff and their representatives will be engaged and consulted over any
proposed changes in services that affect them is ignored in the Bill.
The single local government seat on ICBs covering wide geographical areas would
leave no real voice for local authorities at the “place” level.
The Bill makes no reference to “place” and has no provisions to
implement NHS England’s repeated promises of delegation of decision-making
to ‘place’ level. Instead each ICB would set its own constitution,
opening up a new post code lottery of varying levels of local influence.
Amendments have already been tabled to toughen up requirements for all NHS bodies
to meet in public, make arrangements for remote access, publish all the papers
in good time, and seeking to prevent them from using any argument of commercial
confidentiality to avoid providing information.
In line with the proposals from nine councils in Cheshire & Merseyside amendments
are also required to ensure that each ICS should be based on the principle of
“primacy of place”, with all matters devolved to place-based decision-making,
unless there is a compelling reason (agreed by the ICS Partnership Board) for
aggregating responsibility at the ICS level.
Local access to the full range of NHS services should be guaranteed to all communities,
and any change to local services must be subject to oversight by each council’s
Health Scrutiny function. Local authority powers to refer contested changes
to the Secretary of State must be preserved.
The proposed Integrated Care Partnerships are being set up with little or no
powers to influence the integration of care. Amendments can highlight the need
for them to be able to challenge NHS decisions which do not accord with local
wellbeing strategies, or which do not address local needs adequately, and put
forward their own proposals.
Funding allocations to places and providers, and all major decisions over expenditure
by ICBs should be transparent, fair, and subject to local democratic challenge
by the ICP and local authorities. Meetings of the ICS Partnership Boards also
need to be held in public, and webcast.
Discharge to assess
The Bill also proposes to change the law to remove the legal requirement to
assess patients prior to discharge from hospital.
While some pilot schemes have deployed additional resources to facilitate "discharge
to assess" – and of course there were specific reasons for suspending
the law during the pandemic – the general picture outside hospitals is
one of grossly inadequate community and primary care and social care services,
raising a real risk in many areas of patients discharged in this way merely
being dumped without support.
Amendments must require stringent safeguards before any such changes, and protect
patient rights.
Trusts and Foundation Trusts
To enable proper integration of services, the whole of the market infrastructure
should be removed. The Bill does remove the duty around promoting autonomy,
curbs some of the “freedoms” of Foundation Trusts (FTs) and scraps
what proved to be unachievable requirements of the 2012 Act for all NHS trusts
to become foundation trusts.
But it leaves FTs outside of any “integration” process and not subject
to direction by the ICBs or by NHS England. It also leaves intact the highly
controversial 2012 Act provision for FTs to expand their private patient and
non-NHS income up to half of the FT’s total revenue without any proper
scrutiny.
This is an obstacle to any integration of services, since some FTs would be
free to go their own way and focus on non-NHS activity at a time when NHS resources
are stretched to the maximum. Some FTs, like Oxford University and Royal Marsden
are already doing so.
Amendments to the 2012 Act can highlight why FTs should be on equal status with
NHS trusts (a level playing field), make them subject to direction in the same
way, reimpose the cap on non-NHS income, and require both FTs and NHS Trusts
to publish income AND EXPENDITURE details of any private patient activity –
to expose the real cost to the NHS.
Payment scheme
A new NHS Payment scheme is proposed in the Bill to replace the current national
tariff of prices for patient care with locally-negotiated prices – which
poses the danger of a race to the bottom on quality of care and a revival of
price-based competition.
The details of any new regime are wholly unclear and some restrictions should
be put into the Bill to ensure a genuine move away from market-based mechanisms
like payment by volume and back to block contracts based on nationally-decided
costings. Competition based on price should not be permitted.
Workforce Planning
The Bill (Clause 33) proposes only a very weak duty as regards planning. ICBs
must have a duty to plan to meet their workforce needs as a key part of any
planning. All workforce plans must include recognition of nationally agreed
Agenda for Change terms and conditions for all but the most senior NHS staff.
Professional regulation
New powers over professional regulation should not be given to the SOS unless
the Bill imposes some stronger oversight by parliament and some test to apply
as to the overall value of any change. These proposals are in Part 5 of the
Bill, allowing more time for trade unions, professional bodies and campaigners
to collaborate on a more substantial critique of the government proposals and
lobby for appropriate amendments to address concerns over deregulation and the
likely adverse impact on standards and patient care.
Other parts of the Bill
Some sundry additional sections of the Bill which do not directly relate to
the proposals for Integrated Care Systems and how they should work will also
need to be scrutinised and addressed, but agreement on these is not necessary
as a basis for the main campaign to oppose the Bill and to highlight its many
flaws through targeted amendments.
Campaigning will also continue on pay, terms and conditions and other potential
issues and legitimate concerns relating to ICSs but not directly covered by
the Bill.