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‘Failing’ NHS Trust leaders will have pay rises cut under new ‘carrot and stick’ approach

Home » News » ‘Failing’ NHS Trust leaders will have pay rises cut under new ‘carrot and stick’ approach

The DHSC says bonuses of up to 10% will also be on offer for ‘top performers’ under the new ‘carrot and stick’ approach. The ‘bold shake-up’ will transform NHS services ‘from boardroom to bedside’, the DHSC says, cutting waiting lists and driving better patient care as part of the government’s Plan for Change.

Under the new plans, the government will look to learn from some of the most effective businesses in the country to recruit top talent to struggling Trusts – with leadership vacancies in badly performing areas coming with a temporary pay increase of 15%, worth up to £45,000. Pay bands for senior managers will also be refreshed to attract and retain effective leaders within the NHS.

Simultaneously, failing CEOs could see up to £15,000 docked from their salaries if they run into debt or fail to deliver improvements. This is in addition to any existing processes to tackle poor performance, where persistently failing managers could be sacked if they do not turn things around.

The ‘overhaul’ also establishes stricter accountability for very senior managers, demanding greater financial rigour across all NHS Trusts and Integrated Care Boards (ICBs) and a drive for productivity.

Health and Social Care Secretary Wes Streeting (pictured) said: “Some of the best businesses and most effective organisations across Britain and the world reward their top talent so they can keep on delivering. There’s no reason why we shouldn’t do the same in our NHS. We will reward leaders who are cutting waiting times and making sure patients get better services. But bonuses and pay rises will be a reward and not a right – because I’m determined that every penny we invest through our Plan for Change is money well spent. Our carrot and stick reforms will boost productivity, tackle underperformance, and drive up standards for patients.”

 

 

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  • May 19, 2025

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