Reports have emerged suggesting that the £1 billion outsourcing contract tentatively agreed between the NHS and Capita may result in up to one thousand jobs being cut in administrative areas of the health service, in order to save 40 per cent in costs and boost the frontline of the health service.

NHS England previously stated that the Capita deal will create “substantial administrative savings to reinvest in frontline health services, and will form the basis of full consultation with the employees involved.”

Another aim of this new outsourcing partnership is to deliver 40 per cent cost savings for the NHS in order to meet stringent new austerity measures. While roles involving clinical records management and payments administration will be affected, no frontline or patient-facing job losses have been mentioned.

According to the FT, almost 80 per cent of Primary Care Support Services workers could stand to lose their jobs, while 28 of the department’s 30 offices could be shut when Capita officially begins work on the contract in September.

Capita has declined to comment, saying that it would be inappropriate to do so until the contract has been finalised. Although the Department of Health is expected to approve the deal in a matter of days, Capita is still only see as the government’s “preferred bidder” at this time.

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