Agency Worker Policy Sparks Recruitment Sector Concern
Fresh Government Statement on Agency Workers Triggers Industry Backlash
The Department of Health and Social Care’s latest update on the use of agency staff has ignited significant concerns throughout the recruitment sector. Termed a "scapegoating statement" by industry leaders, the announcement’s intent—to address agency spending within the NHS—has been met with widespread skepticism.Neil Carberry, Chief Executive of the Recruitment and Employment Confederation (REC), issued a sharp response, highlighting the essential role agency staff play in modern workforce management. Carberry said:
“Employers globally use agency staff to effectively manage employment costs and varying demand as an addition to their core substantive employees. Agencies help save money and improve service, while offering skilled professionals the working lives they want.”
Why the Recruitment Industry Pushback?
According to the REC, the government’s continuous focus on reducing agency spending disregards the essential flexibility agency workers provide. The Department of Health’s current approach, critics argue, has not resolved workforce challenges within the NHS and may have worsened cost pressures elsewhere, such as NHS staff ‘bank’ arrangements.Key points highlighted by the REC include:
- Long-term spending cuts have not eliminated workforce pressures
- Punitive cost controls have disadvantaged compliant agencies
- Immediate cost-saving measures may risk safe staffing and service continuity
- Collaborative dialogue between government and agencies
- Strategic investment in both permanent staffing and flexible resources
- Recognition of agency staff as partners, not problems
Carberry further noted, "Officials have built a system that has raised bank costs higher than agency, and punished those agencies who signed up to cost controls at the expense of those that didn’t in the name of this crusade."
The Growing Need for a Balanced Workforce Strategy
Recruitment leaders have stressed that agency workers remain vital to sectors facing fluctuating demand. In the NHS, flexibility is crucial to coping with peaks in patient numbers and unexpected staff absences. Agency workers provide a solution that permanent hires alone cannot address.The REC’s statement delivered a call for:
Carberry concluded:
"Today’s scapegoating statement from the government will rightly alarm the public about the impact of rushed cost-cutting on safe staffing. It also further unsettles agency workers—a vital, flexible workforce who are often taken for granted, but without whom the NHS would struggle to operate."
What’s Next for Agency Workers and Employers?
The debate on agency workforce use is unlikely to abate soon. Employers, agencies, and policymakers must strike a genuine balance between cost, flexibility, and quality of service. The recruitment sector stands ready to engage, provided the government moves beyond naming and blaming, and pursues meaningful partnership.Next Steps for Contractors and Employers
If you require guidance on working as, or hiring, agency workers—especially within the NHS or similar sectors—consider these actions:1. Assess your current workforce strategy for resilience and flexibility.
2. Engage with reputable, accredited agencies that prioritise compliance.
3. Stay informed about policy updates that could impact staffing models or costs.
4. Seek professional advice to ensure optimal contract arrangements and risk management.
Stay proactive to ensure your operations remain compliant and competitive in a changing staffing landscape.
