The costs of the changes that were announced on the 16 May will depend on a number of factors, including the location of new organisations being created, the number of people in the new organisations, and new pay ranges for very senior managers as well as changes in estate costs following reconfiguration.
These arrangements are currently being worked up and discussed with trade unions and staff. Until those discussions have been concluded and the detail of new arrangements agreed it is not possible to confirm or accurately forecast costs.
“Commissioning a patient-led national health service” is designed to deliver £250 million savings from administration costs through streamlining for reinvestment in frontline services. The savings are expected to be realised by the end of 2007 and then every year for reinvestment beginning in 2008-09.