The Department estimates that total redundancy costs arising as a result of the commissioning a patient led national health service initiative will be £325 million. These figures are difficult to estimate, and will only become firmer as new structures are put in place in strategic health authorities, primary care trusts and ambulance trusts.
The reconfiguration of primary care trusts and strategic health authorities provides an opportunity to deliver savings, both by reducing the number of organisations and through the greater sharing of functions. By 2008, this reconfiguration is expected to deliver at least £250 million savings each year for re-investment in frontline services.