Health officials are drawing up plans to draft in thousands of extra volunteers to help the NHS cope with ambulance delays and hospital pressures this winter, according to a leaked document that lays bare the scale of the crisis in Britain’s healthcare system.
People will work for nothing in the NHS. Therefore low pay in the NHS is not what ails the NHS, is it?
And now for some fairly basic finance, this isn’t even economics. The cost of employing someone in the NHS is high. It’s the wages, plus the working conditions, the maternity leaves, the diversity training and, the biggie, the pension. The pension costs are not the contributions made, they’re the net present value of the future pensions – a much higher number.
The complaint is that the cash component of that total compensation is too low. While the financing of the entire system is high already. So, change the composition of the total compensation. Lower the future pensions to pay more in wages now. Job done.
Finally, a posit. NHS pensions, as with the state one, are pay as you go pensions. There’s no investment fund there. “Contributions” this week get paid out as pensions next. Thus violates Spud³’s insistence that pensions savings should be put to work to build the necessary investments for the future. So, that needs to change as well then. How can we build that glorious future society if the public sector is not using pensions to invest in building it?
Change all public sector pensions from defined benefit paid out of current cashflow into defined contribution ones with investment funds backing them and there’d be plenty to pay for that Green New Deal, wouldn’t there? Job done.