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Efficiency Review

Volume 458: debated on Thursday 15 March 2007

To ask the Secretary of State for Health if she will break down the efficiency savings in each workstream referred to in the answer of 26 October 2006, Official Report, column 2087W, on the Efficiency Review, by area of savings. (123038)

The breakdown of savings within each workstream was as follows:

£ million

Procurement

Pharmaceuticals procurement

974

Supply chain efficiency programme

169

Purchasing and Supply Agency procurement

100

Independent Treatment Centre procurement

54

1,297

Productive time

Process improvement

1,024

Input costs

94

Time releasing

92

1,210

Social care

Cost efficiency programmes

121

Non cashable gains

58

179

Corporate services

Microsoft contract

30

Shared services

1

Electronic staff records

1

Electronic recruitment

6

38

Public Funding and Regulation (PFR)

Departmental operating costs

20

Arms length bodies

55

75

Total

2,799

This breakdown correlates to the total efficiency gain calculated in July 2006 for the period to year ending March 2006. The gain for process improvement was subsequently revised to £777 million following identification of a calculation error. Procurement and PFR savings were revised by a net positive £22 million following receipt and validation of full year end data. The revised total reported saving up to March 2006 is £2,576 million.

Savings for social care are provided by local authorities in their annual efficiency statement. These statements provide a split of cashable and non cashable savings but are not required to provide a more detailed breakdown by project. This level of information is retained locally.