Agency workforce utilization strategy critically evaluated as a rehashed strategy that did not succeed - REC statement
The National Health Service (NHS) has announced a significant strategy aimed at phasing out the reliance on agency workers by the end of the current parliamentary term in 2029. Instead, the NHS plans to transition agency staff into staff banks, which will become the primary source for temporary staffing.
This shift is part of the NHS's 10 Year Health Plan, published in July 2025, which focuses on creating a more sustainable, motivated, and modern workforce while addressing staff burnout and retention issues. The strategy is motivated by cost concerns and workforce sustainability, with the government estimating that the complete elimination of agency staffing could release another £1 billion over the next five years.
However, the transition requires more workers to return to bank and substantive (permanent) roles. The NHS recognises that occasional short-term external staff may still be necessary in emergencies or unexpected staffing surges, such as staff illness or rapid increases in patient demand. Therefore, while the long-term goal is to remove agency staff reliance, some limited flexibility may persist.
The strategy is aligned with other workforce reforms, including creating 1,000 new speciality training posts over three years, reducing international recruitment to under 10% by 2035, and improving the recruitment process to reduce bureaucracy and delays that currently make agency workers a more costly and sometimes necessary option.
The NHS emphasises the need for an end to name-calling and considers agencies as partners rather than peripheral players. The government is open to working with agencies to achieve its aims, with a focus on a balanced workforce strategy. Agency workers, a vital and flexible workforce, are essential for the NHS to operate, offering skilled professionals flexible working lives.
Despite the Department of Health's commitment to reducing agency spending for years, the issue has not been resolved. Notably, the Department refuses to discuss agency costs with agencies themselves, a fact that has not been addressed in the new strategy.
The strategy does not specify any new punishments for agencies, but the Department has punished those that agreed to cost controls at the expense of those that didn't. Moreover, the system raised bank costs higher than agency costs, a point that is not directly addressed in the strategy.
The NHS requires a flexible approach to meeting immediate pressure, and the strategy includes a flexible approach to temporary staffing needs. The full impact on staffing levels and costs will depend on how successfully the NHS can transition to these new workforce models and improve recruitment and retention.
The strategy is a revision of a failed tactic regarding agency costs, and today's statement from the government marks a new approach towards the issue. Employers globally utilise agency staff to manage employment costs and varying demand, and the NHS recognises the importance of agencies as partners in achieving its goals.
In summary, the NHS is aggressively pursuing a major reform to phase out agency workers by 2029, aiming to reduce costs substantially and stabilise staffing by relying more on internal staff banks and permanent roles. While some temporary use of agency workers may still exist to handle urgent, unforeseen needs, the focus is on creating a more sustainable and cost-effective workforce for the future.
- The transition towards relying less on agency workers and more on staff banks is not only about addressing staff burnout and retention issues in the NHS, but also about incorporating a more sustainable approach to health-and-wellness in the workplace, as part of the 10 Year Health Plan.
- As the NHS strives to optimize its financial resources, a significant part of this strategy involves reducing the reliance on agency workers, which could potentially release an additional £1 billion over the next five years, contributing towards the overall wellness and sustainability of the organization.
