Tackling agency spend within the NHS; a summary of Wes Streeting’s announcement

The NHS spent a staggering £3 billion on agency staff across the last 12 months – a number as eye-watering as it is unsustainable. Health and Social Care Secretary Wes Streeting has made it clear: this level of spending cannot continue. Announcing a bold new reform package, he declared, “We’re not going to let the NHS get ripped off anymore.” But what’s behind this issue, and how could these reforms pave the way for a more sustainable future?

We watched Wes’ talk at NHS Providers last week, but can he truly lead us down the street to the reformed healthcare system he envisions?

What did the Health Secretary say was driving the NHS’s reliance on agency staff?

Understaffing is the root cause. Hospitals face relentless pressure to fill rota gaps, and when there aren’t enough permanent staff, agencies step in to ensure patient care delivery is maintained. While agency staff play a vital role in keeping services running, they often come at a high price. Agency workers are typically paid above standard NHS rates, leaving trusts struggling to balance patient safety with rising costs. It’s a complex juggling act, and one which NHS organisations can understandably struggle to balance amidst rising pressure.

This dependence also has unintended consequences, drawing experienced staff away from permanent roles in favour of the higher pay and flexibility offered by agencies. After years of underinvestment, this vicious cycle is one of the main challenges Streeting’s reforms aim to break.

The government’s plans to curb overspending

Unveiled at the NHS Providers Conference in November, the Health Secretary’s reform package targets wasteful spending while prioritising value for money. Although the full details are still emerging, the key priorities include:

Strengthening the NHS’s permanent workforce: 

The aim is to reduce reliance on agency workers by investing in recruitment and retention strategies for permanent NHS employees, while still recognising the role of agencies in the current model. Investing in the wellbeing and work-life balance of clinicians will be paramount, as hoards of clinicians leaving cite stress as a key factor. This can be done through many initiatives, starting with investing in technology that empowers clinicians with the flexibility they seek, without impacting service delivery.

“Zero tolerance”:

Wes Streeting spoke in a stern tone, frankly noting the need for urgent change. Expect stricter oversight and cost controls to ensure trusts aren’t overpaying for temporary cover. Trusts performing well will be celebrated, while those falling short may face special measures.

Tech-driven change: 

Investing in modern solutions. Streeting and top decision-makers are pledging support to trusts showing a willingness to drive innovation. Tools like Patchwork’s Agency Manager could play a pivotal role. By providing NHS trusts with transparency, optimised shift management, and integrated workforce systems, these innovations are already helping many trusts take back control of their staffing budgets.

How will this impact the NHS and its staff?

For permanent NHS staff, these reforms could bring much-needed relief. Fewer rota gaps mean less pressure and a more manageable workload. For patients, the hope is for better care delivered by a more stable and consistent workforce. And for taxpayers, the ultimate goal is clear: a more efficient NHS that delivers high-quality care without breaking the bank.

However, change won’t happen overnight. Trusts will need the right tools, partnerships, and support to adapt. That’s where innovative tech solutions come into play, with comprehensive implementations that streamline workforce management whilst reducing the need for costly agency reliance.

Wes Streeting’s step towards sustainability

The £3 billion spent on agency staff last year is a wake-up call. While these workers have been a lifeline for many hospitals, and will continue to act as a necessary safety net going forward, the NHS cannot afford to rely on this model long-term. The reforms outlined by Wes Streeting represent a promising and important step in the right direction, but their success hinges on effective implementation across all trusts.

In the meantime, technology and collaboration will be key to driving this change. Solutions like Patchwork Health are already helping trusts save millions, demonstrating the potential of modern tools to transform workforce management. The urgency was clear in Wes’s address – action is needed now to secure a sustainable future for our healthcare system.

Find out more about some of the current solutions and savings here