Saturday, 1 March 2008

That's the way the money goes ..Number 2

This week the National Audit Office, which reports on efficiency and financing of Government departments and thereby throws a welcome light on what Government would like to conceal, reported on the effect of the new salary agreement with doctors.

It is everything we had been led to believe.

1) Government negotiators concluded a deal which ended up costing £1.76 billion more than they expected over the first two years of operation.

2) Productivity has fallen by an average of 2.5% per year, and doctors are working on average seven hours less per week than before.

(It has to be said that the number of consultations with doctors has increased slightly.)

The measure of increase in GP pay is revealed in the Audit Commission statistic that an average GP partner in 2005-06 received £113,614, a rise of 58% since 2002-03. The increase reflects the fact that the partners have taken some of the "profit" accruing to the practice. The pay of GPs who are not practice partners has not increased by anywhere near as much.

This is not written in criticism of doctors, - nearly all of us would accept generous pay settlements offered by the Government. But it is a savage criticism of ministers and of the Government as a whole. The failure to estimate the massive crease in costs indicates either carelessness or naivety.

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