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NHS Trusts: Subsidiary Companies

Answer

Contract award decisions in the National Health Service fall directly to individual NHS bodies, who are responsible for running their own procurement exercises. Ministers at the Department do not have general powers in legislation to direct trusts in relation to the exercise of any of their functions, including in relation to specific contractual decisions. The NHS has established governance processes, in line with Government procurement policy and best practice, to ensure that appropriate contractual decisions are made that represent value for money.

The three NHS Dorset foundation trusts have undertaken two months of engagement concerning proposals to establish a wholly owned subsidiary company to deliver estates and facilities management services. Relevant papers concerning the proposal were placed in the public domain in June 2025 for board meetings held in that month. Under the proposals, the trusts have advised NHS England that there will be no job reductions, and that transferred staff will keep their pay and terms and conditions exactly aligned with the NHS. This covers both current and new staff. NHS England will review the level of assurance around the trust boards’ self-certification as to their readiness to proceed to the next formal consultation stage, which will involve staff and unions.

The Transfer of Undertakings (Protection of Employment) Regulations allow for terms and conditions of service to be protected or frozen as they stand on the date of transfer to a new employer, like a wholly owned subsidiary. NHS trust wholly owned subsidiaries can apply for access to the NHS Pension Scheme for compulsorily transferring staff, and new starters.

The Government expects that any outsourced services are delivered by trusts in a way that improves quality, ensures greater stability and longer-term investment in the workforce, and delivers better value for money, as part of the broader commitments on procurement, as set out in the Make Work Pay programme, with further information available at the following link:

https://www.gov.uk/government/collections/make-work-pay

NHS staff continue to work incredibly hard on delivering the best possible care for patients, and wherever they work across the health service, we expect the highest standards and good terms and conditions.

Secondary information

Type

Written question

Reference

55635

Session

2024-26

Grouped for answer

Yes

Subjects

NHS trusts Subsidiary companies UNISON Dorset

Link

View this Written question on www.parliament.uk