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So, do recruitment agencies save the government money? The short answer is yes... and we are going to show you how.
&nbsp;
Introduction
Once again, the headlines scream that recruitment agencies cost the NHS &pound;3bln a year and imply that we somehow fleece the government, and thus the public, of all this money. Nothing could be further from the truth. In this article I will show how this number is incredibly misleading, that it has already significantly reduced and that, far from being the pirates that we are portrayed, the modern recruitment agency works as a partner with the NHS supporting the flexible demands of such a large workforce and, in fact, on an hour-by-hour basis cost less than substantive staff.
&nbsp;
The evolution of recruitment agencies
Historically, there have been two types of agencies, on-framework, those who work within the strict confines of an overarching contract which dictates charge rates and margin, and off-framework, those who work outside these parameters are able to charge what they like. It was always the off-framework agencies who charged exorbitant rates that created the &pound;2,000 per shift headlines and thus created an environment in which all agencies were vilified as the same villains.&nbsp;
You will be glad to hear that off-framework spend has been all but eradicated following a concerted effort by the NHS and from October of this year it is negligible. In this way the overspend on the agency bill has already been significantly reduced.
&nbsp;
The real cost breakdown
Now, let&rsquo;s contemplate the reality of that &pound;3 billion number. Of this figure, 20%, or &pound;500 million, is VAT which goes directly back to the government. &nbsp;Of the remainder that is then paid to agencies 87% of it, &pound;2.175 billion, goes to the worker, whether it be a nurse or a doctor or other staff member. The remainder, still a significant sum at &pound;325m, goes to the agencies as their gross profit. From this they must pay all of their own costs including staffing costs (from which further income tax and national insurance is deducted and paid to the government), property costs, compliance costs, and the list goes on. The resulting net profit, which is also taxed through corporation tax, is minuscule compared to the number that people believe we&rsquo;re taking.&nbsp;
Circling back to the amount paid to the worker, the &pound;2.175 billion, this sum is then taxed as income and that tax and national insurance is also returned to the government. Conservatively, let&rsquo;s say 25% is returned to the government in this way, that is &pound;544m. Therefore, the government receives at least &pound;1 billion of the original &pound;3 billion touted above.
It should be remembered that there are many reasons why temporary staff are critical to the continued operation of the NHS (see the sidebar below) otherwise they would not be requested. I will now show that if these staff had been employed through the NHS they would, in fact, cost more.&nbsp;
&nbsp;
The true cost of NHS substanstive staff
Using NHS pay scales we can look at salaries for the various bands and experience of nurses, see fig. 1 below as an example. The basic&nbsp;
pay for a Band 5 nurse starts at &pound;35,965 and rises to &pound;43,780 depending on experience. When we add employers National Insurance (at the now increased rate of 15%), the apprenticeship levy and the generous NHS pension, the cost per hour of a substantive worker is, 90% of the time, greater than the maximum capped charge rate that agencies are able to charge for those same nurses.&nbsp;
In fig. 1 you will see that it costs the government &pound;0.54ph for a less experienced nurse but that it saves, that&rsquo;s right, saves the government &pound;5.71ph for the most experienced nurse. And I can tell you that 80% of the nurses we place as temporary workers have more than 4 years of experience. I can also confirm that many of our charge rates are below those stipulated by the framework and therefore that the savings are greater.
Unfortunately, because the NHS pay VAT it is not a saving to the NHS. However, as the VAT goes back to the government it is a saving to the public purse. This is an important distinction but also an overwhelming argument to make the agency supply of nurses zero rated so that this benefit can be taken advantage of. Either way, it does not negate the fact that the government, and therefore the public, saves money by using agency staff.
Extrapolating this data out further, covering the different pay rates in London, inner, outer &amp; fringe as well as the other major staff group that is supplied, band 6 nurses. If I then assume that all the agency bill was for nursing it is easy to show an overall saving to the public purse of &pound;162 million per year by using agency staff. Whilst this is clearly not the reality the point is clear.
Figure 1.
<img src="https://cdn.sourceflow.co.uk/twn5dj864p2u6ex9zi2jeu1qjddi" alt="" width="525" height="405">
<a href="https://nhspayscales.co.uk/nhs-pay-scales-2024-25-predicted">https://nhspayscales.co.uk/nhs-pay-scales-2024-25-predicted</a> &sup1; <a href="https://zelt.app/blog/how-to-calculate-employers-ni-employer-s-ni-calculator-2024-2025-2026/">https://zelt.app/blog/how-to-calculate-employers-ni-employer-s-ni-calculator-2024-2025-2026/</a><a href="https://zelt.app/blog/how-to-calculate-employers-ni-employer-s-ni-calculator-2024-2025-2026/"> </a>&sup2; <a href="https://www.which.co.uk/money/pensions-and-retirement/company-pensions/public-sector-pensions-explained/nhs-pension-schemes-explained-aDjEz6F6ki6Z">https://www.which.co.uk/money/pensions-and-retirement/company-pensions/public-sector-pensions-explained/nhs-pension-schemes-explained-aDjEz6F6ki6Z</a> &sup3; <a href="https://www.gov.uk/guidance/pay-apprenticeship-levy">https://www.gov.uk/guidance/pay-apprenticeship-levy</a><a href="https://www.gov.uk/guidance/pay-apprenticeship-levy"> </a>⁴ <a href="https://www.england.nhs.uk/publication/price-card/">https://www.england.nhs.uk/publication/price-card/</a> ⁵
The need for government action
The final piece in the puzzle is staff bank pay rates. Staff banks are operated by trusts individually or in groups and manage the provision of additional shifts to their existing staff members. It is only shifts that these staff banks are unable to fill that are then released to agencies.
Over the last five years we have seen multiple incidents of staff bank pay rates exceeding the framework charge rates that we are able to supply at. i.e. not even just exceeding the pay rate we are able to offer but the rate we would invoice for that workers time.
In this way, trusts have attracted candidates away from agencies back into the staff bank system, but at a huge cost. The &lsquo;agency cost&rsquo; that for so many years was used as a political punching bag as successive opposition parties lambasted the sitting government has been moved to staff bank costs and at a much-increased rate. This has cost the UK public many millions of pounds.
I am now calling on the government to see common sense and to work with agencies to provide workforce management solutions using a combination of substantive workers, staff bank and, where appropriate, flexible working to meet high demand, local and specialist shortages.&nbsp;
Perhaps the government could look at other areas of the NHS budget which are bloated and out of control such as the cost of medicines where big pharma makes billions of pounds of profits, far exceeding the &pound;3 billion that the papers so enjoy splashing across their headlines. Perhaps the problem is that the agencies are either not savvy enough or not rich enough to pay to lobby the government in the way that big pharma clearly are.
In 2022/23, the total cost of medicines in England rose to &pound;19.2 billion, according to data from the Pharmaceutical Journal. Even after accounting for the &pound;674 million central rebate, this figure dwarfs the often-criticized &pound;3 billion attributed to agency staffing. The profit margins of pharmaceutical companies significantly exceed those of recruitment agencies, yet these costs are rarely subjected to the same scrutiny in public or political discourse.
At the same time, NHS staffing shortages continue to pose a critical challenge. According to analysis from The King&rsquo;s Fund, the NHS is grappling with a workforce shortfall of over 112,000 roles, with critical gaps in nursing, medical, and allied health professional positions. These shortages underscore the necessity of temporary staffing solutions to ensure the continuity of care and patient safety.
Addressing staffing costs without tackling these systemic challenges risks creating further strain on the NHS. A balanced discussion must include not only the savings provided by recruitment agencies but also a reevaluation of pharmaceutical pricing and its disproportionate impact on the NHS budget.
Reasons for Using Temporary Workers
<ol>
<li>Workload Fluctuations: The NHS experiences cyclical and seasonal changes in workload. Temporary staff provide flexibility to cover periods of high demand without having to commit to permanent hires. </li>
<li>Specialized Skills for Specific Projects: Temporary workers with specialized expertise can be brought in for specific projects or to fill skill gaps without long-term hiring costs. </li>
<li>Employee Absences: Temporary labour helps cover unexpected absences such as sick leave, parental leave, or sabbaticals, ensuring the continuity of safe care. </li>
<li>Cost Efficiency: While temporary workers may cost more per hour at a basic pay level, they often don&rsquo;t receive the same benefits (like pensions, paid leave, etc.) as full-time employees, which can make short-term costs lower. </li>
<li>Quick Response to Growth or Change: Should there be rapid growth in demand, temporary workers allow the NHS to scale up quickly without the lengthy processes of permanent hiring.</li>
</ol>
Reasons for Using Temporary Workers
<ol>
<li>Adaptability: Trusts can respond quickly to changing market demands or unexpected shifts in workload, ensuring a safe clinical environment. </li>
<li>Cost Savings: Hiring temporary staff for peak periods avoids the long-term costs associated with full-time employment, like healthcare and pensions. </li>
<li>Access to Specialized Talent: Temporary workers often bring specific skills and experience that may not exist internally, allowing Trusts to deliver complex or unique solutions. </li>
<li>Reduced Recruitment Burden: The process of hiring, onboarding, and training a permanent employee is time-consuming and costly. Temporary workers from agencies are often pre-vetted and can begin work with minimal training. </li>
<li>Mitigation of Risk: If a temporary hire is not a good fit, they can be replaced or released with fewer complications than a permanent employee. This flexibility reduces legal risks and costs tied to workforce changes. </li>
<li>Maintaining Employee Morale: When workload surges or during demanding periods, temporary workers help spread the load, reducing burnout and pressure on full-time employees. This contributes to overall team morale and productivity.</li>
</ol>
In the case of the NHS, these benefits are critical to ensuring they meet patient care needs despite the fluctuations in demand and staffing challenges. View our Full Nurse Cost Calculator <a href="https://shorturl.at/iU02w">here</a> Check out our Podcast episode 'Beyond The Headline' as we discuss this in further detail!
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Beyond the headlines: The real cost efficiency of temporary staffing in the NHS

In the ever-evolving field of healthcare, continuous professional development (CPD) is essential for nurses to maintain and enhance their skills, knowledge, and competencies. For nurses in the UK, CPD is not just a professional requirement but a critical component of delivering high-quality patient care and advancing in their careers. This article explores the importance of CPD for nurses, how it impacts their practice, and the resources available to support their ongoing learning journey.
<h3>Why Continuous Professional Development Matters</h3>
CPD is crucial for nurses as it ensures they remain up-to-date with the latest medical advancements, clinical practices, and regulatory requirements. Here are some key reasons why CPD is so important:
<h4>1. Ensuring High Standards of Patient Care</h4>
Healthcare is a rapidly changing field, with new treatments, technologies, and protocols emerging regularly. CPD helps nurses stay informed about these changes, ensuring they can provide the best possible care to their patients. By engaging in CPD, nurses can refresh their existing knowledge and acquire new skills, leading to improved patient outcomes.
<h4>2. Meeting Regulatory Requirements</h4>
In the UK, CPD is a mandatory requirement for nurses as part of their registration with the Nursing and Midwifery Council (NMC). The NMC requires nurses to complete 35 hours of CPD over three years as part of the revalidation process. This ensures that nurses remain competent in their practice and continue to meet the standards set by the NMC. Failure to meet CPD requirements can result in a nurse being unable to renew their registration, impacting their ability to practise.
<h4>3. Enhancing Career Opportunities</h4>
CPD is not only about maintaining competence but also about advancing one&rsquo;s career. By engaging in CPD, nurses can develop new areas of expertise, take on more specialised roles, and even progress into leadership positions. For example, nurses interested in areas such as critical care, mental health, or paediatrics can pursue CPD courses that deepen their knowledge and open up new career pathways.
<h4>4. Boosting Professional Confidence</h4>
Keeping up with the latest developments and acquiring new skills through CPD can significantly boost a nurse's confidence in their professional abilities. This confidence translates into better decision-making, improved patient interactions, and a more fulfilling career. Nurses who engage in CPD are also more likely to feel motivated and committed to their profession, contributing to higher job satisfaction and lower burnout rates.
<h4>5. Supporting a Culture of Lifelong Learning</h4>
CPD fosters a culture of lifelong learning within the nursing profession. It encourages nurses to take ownership of their professional growth and remain curious and engaged throughout their careers. This culture of continuous learning is essential for adapting to the challenges and opportunities in modern healthcare, ultimately benefiting both nurses and the patients they care for.
<h4>Resources for CPD in the UK</h4>
Nurses in the UK have access to a wide range of resources to support their CPD. These include:
<h4>1. Online Courses and E-Learning</h4>
Many organisations, including the NHS, offer online CPD courses that nurses can complete at their own pace. These courses cover various topics, from clinical skills to leadership development, making it easier for nurses to find learning opportunities that suit their needs.
<h4>2. Workshops and Seminars</h4>
Attending workshops, seminars, and conferences is another valuable way for nurses to engage in CPD. These events provide opportunities to learn from experts, network with peers, and stay informed about the latest trends in healthcare.
<h4>3. Reflective Practice</h4>
Reflective practice is an integral part of CPD, allowing nurses to critically evaluate their experiences and identify areas for improvement. Writing reflective accounts, participating in group discussions, and seeking feedback from colleagues are all effective ways to engage in reflective practice.
<h4>4. Mentorship and Coaching</h4>
Mentorship and coaching are powerful tools for CPD, offering personalised guidance and support from experienced professionals. Nurses can benefit from the insights and advice of their mentors, helping them navigate their career development and overcome challenges.
<h4>Conclusion</h4>
Continuous professional development is a cornerstone of nursing practice in the UK. It ensures that nurses remain competent, confident, and capable of providing high-quality care in a rapidly changing healthcare environment. By engaging in CPD, nurses can not only meet regulatory requirements but also enhance their career prospects, contribute to a culture of excellence, and ultimately improve patient outcomes.
For nurses looking to take their careers to the next level, embracing CPD is the key to unlocking their full potential.

The Importance of Continuous Professional Development (CPD) for Nurses in the UK

The National Health Service (NHS) is the backbone of healthcare in the UK, providing essential medical services to millions of people every day. However, the increasing demand for healthcare services has placed significant pressure on the NHS, leading to workforce challenges, particularly in nursing. Nursing agencies have become vital partners in supporting the NHS, helping to bridge staffing gaps and ensuring that patient care remains uninterrupted.
<h3>How Nursing Agencies Support the NHS</h3>
Nursing agencies play a crucial role in supplementing the NHS workforce by providing qualified and experienced nurses on short notice. These agencies work closely with NHS trusts to understand their staffing needs and provide timely solutions. Here&rsquo;s how nursing agencies are helping to keep the NHS running smoothly:
<h4>1. Addressing Staffing Shortages</h4>
Staffing shortages have been a longstanding issue for the NHS, exacerbated by factors such as an aging population, increased healthcare demands, and the impact of the COVID-19 pandemic. Nursing agencies provide a flexible and responsive solution by supplying temporary, contract, and permanent nursing staff to fill critical gaps. This ensures that patient care remains consistent and that wards are adequately staffed, even during peak times.
<h4>2. Enhancing Workforce Flexibility</h4>
The dynamic nature of healthcare means that staffing needs can change rapidly. Nursing agencies offer the flexibility to scale up or down based on demand. Whether there&rsquo;s a sudden influx of patients or a need for specialised care, agencies can quickly provide the right nursing professionals with the appropriate skills and experience. This flexibility is essential for the NHS, allowing it to respond to fluctuating demands without compromising on care quality.
<h4>3. Supporting Specialised Care Needs</h4>
Nursing agencies are instrumental in providing specialised nursing staff to the NHS. Whether it's critical care, paediatrics, mental health, or other specialised areas, agencies can match highly trained nurses with the specific needs of NHS trusts. This support is particularly valuable in complex cases where specific expertise is required, ensuring that patients receive the best possible care.
<h4>4. Reducing Burnout Among NHS Staff</h4>
Nursing burnout is a significant concern within the NHS, often resulting from high workloads, long hours, and the emotional toll of patient care. By providing additional staff through nursing agencies, the NHS can alleviate some of the pressures on its permanent workforce. This helps reduce burnout, improve job satisfaction, and maintain a high standard of care for patients.
<h4>5. Facilitating Recruitment and Retention</h4>
Nursing agencies not only provide temporary staffing solutions but also play a role in the recruitment and retention of nursing staff for the NHS. Agencies help attract new talent to the healthcare sector by offering diverse job opportunities and career development support. Additionally, they assist in retaining experienced nurses by providing flexible working options that meet their lifestyle needs.
<h4>The Future of Nursing Agencies in the NHS</h4>
As the NHS continues to face challenges related to staffing and patient care, the role of nursing agencies is likely to become even more critical. Collaboration between the NHS and nursing agencies will be essential to ensure that the healthcare system remains resilient and capable of meeting the needs of the UK population.
Nursing agencies will continue to provide invaluable support by offering flexible staffing solutions, addressing specialised care needs, and helping to maintain a healthy and motivated workforce. By working together, the NHS and nursing agencies can ensure that patients across the UK receive the high-quality care they deserve.

The Crucial Role of Nursing Agencies in Supporting the NHS

In the dynamic world of healthcare, nurses play a pivotal role in ensuring the well-being of patients. Whether you're a newly qualified nurse or a seasoned professional, finding the right nursing job can make all the difference in your career trajectory. Day Webster Group, a leading nursing agency in the UK, is dedicated to helping nurses find roles that align with their skills, passions, and career aspirations.
<h3>Why Day Webster Group Is the Right Nursing Agency for You</h3>
Choosing the right nursing agency is crucial for your career growth and job satisfaction. Day Webster Group stands out as a premier nursing agency by offering a tailored approach to nursing recruitment. We understand the challenges nurses face in today&rsquo;s healthcare environment, and we are here to provide the support and opportunities you need to thrive.
<h4>Diverse Nursing Job Opportunities</h4>
At Day Webster Group, we offer a broad spectrum of nursing jobs across the UK, catering to all levels of experience and specialties. Whether you're interested in working in a bustling hospital environment, providing community care, or exploring opportunities in the private sector, our nursing agency has positions that match your career goals. From temporary shifts to permanent roles, our diverse job listings ensure that you can find the perfect fit.
<h4>Exceptional Pay and Perks</h4>
We believe that nurses should be rewarded for their hard work and dedication. That&rsquo;s why Day Webster Group offers competitive pay rates and a comprehensive benefits package. Our nursing jobs come with flexible working options, and opportunities for ongoing professional development. We strive to ensure that our nurses feel valued and motivated, allowing them to focus on providing the best care possible.
<h4>A Personalised Approach to Nursing Recruitment</h4>
At Day Webster Group, we understand that every nurse's career path is unique. Our personalised approach to nursing recruitment ensures that your individual needs and preferences are taken into account. Our dedicated consultants work closely with you to understand your career aspirations and match you with nursing jobs that align with your goals. From the initial job search to ongoing career support, we are here to help you every step of the way.
<h4>How Day Webster Group Can Help You Find Your Next Nursing Job</h4>
Finding the right nursing job can be a daunting task, but with Day Webster Group, it doesn't have to be. Here's how we can help you secure the perfect role:
<ol>
<li>
Register Online: Start your journey by registering with Day Webster Group. This gives us insight into your qualifications, experience, and job preferences, allowing us to match you with the most suitable nursing jobs.
</li>
<li>
Explore Job Listings: Our user-friendly website makes it easy to browse through the latest nursing job vacancies. You can filter jobs by location, specialty, and contract type to find the ones that best fit your needs.
</li>
<li>
Consult with Our Team: Our experienced recruitment consultants are on hand to provide expert advice and guidance. Whether you need help with your CV, interview tips, or simply want to discuss your career options, we&rsquo;re here to support you.
</li>
<li>
Apply with Ease: Applying for jobs through Day Webster Group is straightforward and hassle-free. Once you've found a position that interests you, you can submit your application online in just a few clicks.
</li>
</ol>
<h4>Take the Next Step in Your Nursing Career</h4>
At Day Webster Group, our mission is to empower nurses to reach their full potential. By partnering with our nursing agency, you gain access to a wealth of nursing jobs and the support of a team that genuinely cares about your career success. Whether you're looking for a new challenge, a change of environment, or greater flexibility in your work, we have the opportunities and expertise to help you achieve your goals.
Don&rsquo;t miss out on the chance to advance your nursing career. Visit Day Webster Group today to explore the latest nursing jobs and discover how we can help you find your ideal role.

Elevate Your Nursing Career with Day Webster Group: Your Premier Nursing Agency

Sharon Chakandinakira is celebrating after being honoured with an award for her amazing contribution to equality, diversity, and inclusion. Miss Chakandinakira is an internationally educated nurse, who migrated from Zimbabwe to the UK in 2021 and began working at a hospital in Crewe.
&nbsp;
The Mid Cheshire Hospitals NHS Foundation Trust recruit attended a Royal College of Nursing (RCN) ceremony in Manchester. She was honoured in front of her colleagues from across the health and social care sector in the northwest.
&nbsp;
Sharon achieved a BAME Leadership Programme, which assisted her in learning how to develop her career at Mid Cheshire. Following that, she completed a Professional Nurse Advocate course which is a nationally recognised qualification that assists NHS staff in understanding the challenges faced by their colleagues and supports improvements.
&nbsp;
Miss Chakandinakira, contributed to the recruitment of staff at the hospital, including those from the Trust&rsquo;s international programme. She was chosen as one of only six winners at the RCN North West&rsquo;s annual awards held at Limelight Old Trafford.
&nbsp;
She won the Outstanding Contribution to Equality, Diversity, and Inclusion Award and was congratulated by North West&rsquo;s RCN Regional Director also known as Estephanie Dunn.
&nbsp;
Sharon said &ldquo;I would like to express my deepest gratitude to everyone who has played a role in helping me achieve this award, especially the Matron, Ward Manager, and the Pastoral Team.
&nbsp;
&ldquo;This award is a testament to the hard work, dedication, and passion that I have invested in my career, and I am grateful for the recognition.&rdquo;
&nbsp;
The Chief Nursing Officer also known as Scott Malton, said &ldquo;Sharon&rsquo;s impressive personal development and hard work has been invaluable for her team and the Trust.

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Exceptional Leighton Hospital Nurse honoured with Outstanding Contribution to Equality, Diversity, and Inclusion Award

Learn more about
working at Day Webster

Committed to making a positive impact

We believe in equal opportunities for all

Complete the form

Exceptional Leighton Hospital Nurse honoured with Outstanding Contribution to Equality, Diversity, and Inclusion Award

Learn more about working at Day Webster

Committed to making a positive impact

We believe in equal opportunities for all

Learn more about
working at Day Webster