Government shift on outsourcing is a positive step for NHS

Date posted: 26 September 2025
Government shift on outsourcing is a positive step for NHS

Government plans to halt the outsourcing of NHS workers to subsidiary companies are a positive step that will prevent staff pay and conditions being slashed and help ease the NHS recruitment crisis, says UNISON today (Friday).

Proposals to move NHS staff into separate companies, known as SubCos, will be paused. And any future transfer of NHS workers will be approved only where there is clear union support, as well as protection of NHS terms and conditions.

Guidance issued today by NHS England specifically highlights UNISON’s role in raising concerns about moving staff into separate companies. The union says the practice undermines the principle of a single NHS workforce and creates unnecessary anxiety for staff.

The union has long campaigned against hospital trusts farming out its support services. Efforts have redoubled as plans for a new wave of SubCos began to be drawn up.

Outsourced staff often have lower pay and worse conditions than workers employed directly by the NHS, and are less likely to have the same access to career opportunities and pensions, says UNISON.

Ahead of the election, Labour promised to “bring about the biggest wave of insourcing of public services in a generation.”

Today’s announcement comes after health workers in Dorset voted to take strike action in a bid to halt plans that would have seen thousands of them transferred to a SubCo.

The union warned of walkouts by NHS staff up and down the country if ministers didn’t act on outsourcing.

UNISON general secretary Christina McAnea said: “Today’s announcement is a positive step in the right direction and shows ministers are listening to the union’s warnings.

“The NHS relies on support staff to keep hospitals clean, safe and running efficiently. They deserve the same pay and conditions as other health workers.

“Subsidiary companies have never been the right way to deliver NHS services and UNISON will keep campaigning for further change.

“Any trusts considering outsourcing need to think again and work with their staff on better ways to save money or reorganise services.”