NHS hospital sparks fury by cutting staff overtime pay to save money

27 March 2025, 17:04 | Updated: 27 March 2025, 17:15

NHS staff at Royal Cornwall Hospital have hit out after bosses announced they want to make savings by cutting their overtime pay.

In an internal memo sent to all staff, Alison Thorne-Henderson, the dual chief people officer with the Royal Cornwall Hospitals Trust (RCHT), which runs the hospital at Treliske in Truro, St Michael's Hospital in Hayle and West Cornwall Hospital in Penzance, said the trust is facing tough financial times ahead.

Ms Thorne-Henderson said overtime pay over staff's contracted 37.5 hours a week will no longer be paid at one and a half times the normal rate but instead will be paid as normal with employees taking the time in lieu instead.

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She said: "As we know, next year is going to be challenging for the NHS, with significant change for NHS England, integrated care boards and provider NHS trusts and foundation trusts.

"All parts of the NHS and the Department of Health and Care will face significant financial pressures and will need to ensure we stay within the budget allocated to us. We will be required to deliver our biggest cost improvement programme, whilst increasing our productivity. Some difficult and sometimes tough decisions to reduce our financial outgoings will be needed."

In a Facebook message to staff, Unison (Cornwall acute health branch), said: "We are aware that the trust has recently sent an email to all staff regarding payments for hours worked over those to which you are contracted. This has taken us completely by surprise and we will be in talks with the trust shortly, especially about the way this has been handled.

"After reminding members of their employment rights, Unison added: "While the trust, with all others, is in an incredibly difficult financial position, we do not accept that the nationally agreed overtime rates are in any way excessive or unreasonable."We do not accept that stepping outside of contract terms in order to save money from staff, going the extra distance to help meet the clinical targets and responsibilities of the organisation, is reasonable or indeed sensible considering how dependent the service is upon your goodwill."

A spokesperson urged the trust to reconsider its "ill-thought-out plans and stop trying to get work done on the cheap".

Defending its decision to look at cutting staff overtime rates, a spokesperson for the trust said: "As with many NHS organisations across the country, RCHT is facing significant financial pressures in response to meeting government targets.

"We are undertaking a review of our expenditure and are implementing measures to ensure maximum cost-effectiveness where necessary. One of the ways we can reduce costs and manage our resources responsibly is to only pay premium payment rates in exceptional circumstances.

"RCHT values its workforce and remains committed to delivering high-quality and safe patient care. Our dedicated staff are core to the services we provide, and we appreciate their understanding and cooperation as we navigate these financial challenges together."