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The new arms-length private companies appeal to NHS trusts because they can reduce their VAT payments, and cut the pay and pensions for any new staff, Unison has said.Only 21 out of 31 NHS trusts approached by Unison complied with the FOI request, but the amount spent by 15 of them is already more than £3.2m.“This transfer of staff to effectively private companies amounts to a back door privatisation and creates a two-tier workforce with fair pay and conditions undermined.Ministers should block this process now.” A Department of Health and Social Care spokesperson said: “NHS trusts have the freedom to organise their work in ways that deliver improved care for patients and good value for taxpayers.NHS trusts are spending millions of pounds outsourcing staff to new private companies, research suggests.A Freedom of Information (FOI) request by Unison has revealed that NHS trusts in England are “shelling out” huge amounts of money on consultants.Topping the list of high-spenders is Clatterbridge Cancer Centre in Birkenhead, which spent more than £661,000 establishing a wholly owned subsidiary.

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“These wholly owned subsidiaries are creating a two-tier workforce where new staff are likely to be far worse off in terms of their pay and pensions.

There is also no evidence that these new companies improve efficiency or productivity.” She added: “Porters, cleaners and other staff chose to be part of the NHS team, not to be contracted out and treated like second-class employees.” Jonathan Ashworth, shadow health secretary, said: “It makes no sense whatsoever that NHS trusts are spending so much money transferring their own staff out of the public sector.

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