NHS boss salaries targeted by health secretary Jeremy Hunt

Temporary workers cost the NHS £3.3billion in the last financial year

Jeremy Hunt told Parliament is was a "difficult decision" but the NHS needed certainty (PA)

The Health Secretary has promised to end “rip off” salaries for temporary NHS managers.

Jeremy Hunt said agencies would no longer be able to demand pay for temporary bosses of more than 55 per cent above the salary of permanent employees on Tuesday.

A cap on temporary nurses and doctors was already scheduled, but Mr Hunt’s announcement – due to be implemented by April 2016 – targets managers for the first time.

“For too long staffing agencies have been able to rip off the NHS by charging extortionate hourly rates which cost billions of pounds a year and undermine staff working hard to deliver high-quality care,” Mr Hunt said.

In the last financial year, the NHS reportedly spent more than £3.3billion on temporary agency doctors and nurses, with spending on locum staff up by £800million from 2014.

For too long staffing agencies have been able to rip off the NHS by charging extortionate hourly rates which cost billions of pounds a year 

&#13; <p>Jeremy Hunt</p>&#13;

The health secretary told reporters the crackdown would save the NHS an estimated £1bn over three years. However, even under the proposed new regulations (starting from next month) stand-in senior bosses could still earn up to £400,000 annually.

Officials said the cap was designed to ensure managers were not better off than permanent staff, while compensating them for a lack of pension options, sick pay and holiday.

Professor Sir Mike Richards, Chief Inspector of Hospitals said capping temporary staff salaries was the “right” decision for the NHS.

Chief Executive & General Secretary of the RCN Janet Davies said the announcement “may look like firm action from the Government,” but would “not resolve the huge financial deficits trusts are facing because of spiralling patient demand and flat-lining budgets.”