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New NHS pay scheme shows no productivity gains but did not add extra costs

BMJ 2009; 338 doi: (Published 30 January 2009) Cite this as: BMJ 2009;338:b369
  1. Ann McGauran
  1. 1London

    A report on Agenda for Change, the system of pay and conditions that was introduced in the NHS in England over two years from December 2004, has found no evidence of the productivity gains originally promised by the Department of Health.

    The report, from the National Audit Office, says that the department predicted that the new system would save the taxpayer at least £1.3bn (€1.4bn; $1.8bn) by 2008-9, with a 1.1% to 1.5% year on year rise in productivity. It did not, however, set up a way to measure the effects of pay modernisation on productivity.

    The report says that the only productivity measure available for the NHS shows that …

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