NHS supply chain finance
Public Accounts Committee
Closed
Inquiry
Prior to its collapse in March 2021, Greensill Capital was involved in the provision of a supply chain finance scheme to more quickly reimburse community pharmacies for dispensing NHS prescriptions. Greensill was also involved in a “payday” scheme that enabled employees of NHS Trusts to access their salaries early. Following …
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8
Recommendations
24
Conclusions
1
Report
1
Oral session
2
Letters
1
Event
Activity timeline 5 events
28 Apr
2022
2022
4 Feb
2022
2022
6 Dec
2021
2021
6 Dec
2021
2021
15 Nov
2021
2021
Oral evidence
Oral evidence sessions 1 session
15 Nov 2021
View on parliament.uk
NHS supply chain finance
Erika Bannerman · NHS Shared Business Services
Michael Brodie · NHS Business Service Authority
Simon Tse · Crown Commercial Service
Sir Chris Wormald · Department of Health and Social Care
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Thirty-Fifth Report - The pharmacy early payment and salary adva… | HC 745 | 4 Feb 2022 | 32 | Responded |
Recommendations & Conclusions
6 results
5
Recommendation
Rejected
Thirty-Fifth Report - The pharmacy…
The growth in salary advance schemes across the NHS raises questions about their status as...
The growth in salary advance schemes across the NHS raises questions about their status as unregulated consumer lending. In February 2021, the Financial Conduct Authority (FCA) published the Woolard Review which noted that the salary advance schemes market was predominantly …
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Government Response
The government rejects the recommendation to urgently consider regulation for salary advance schemes, arguing they do not constitute credit and lack evidence of consumer detriment. It welcomes the industry's development of a code of practice and will engage with it.
HM Treasury
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20
Conclusion
Rejected
Thirty-Fifth Report - The pharmacy…
The failure of Greensill Capital resulted in some NHS trusts switching to a paid for...
The failure of Greensill Capital resulted in some NHS trusts switching to a paid for salary advance scheme. When Greensill Capital failed in March 2021, the Earnd UK business (formerly FreeUp Finance Limited) ceased to operate. Wagestream, an existing market …
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Government Response
The government rejects regulating salary advance schemes, stating they generally fall outside credit regulation, show no substantive consumer detriment, and thus do not merit regulation. It welcomes an industry code of practice and will monitor for future consumer detriment.
HM Treasury
View details
29
Conclusion
Rejected
Thirty-Fifth Report - The pharmacy…
The National Audit Office reported that between 1.3% and 10% of staff at NHS trusts...
The National Audit Office reported that between 1.3% and 10% of staff at NHS trusts were looking at using these services, so, clearly, a substantial number of people. We asked NHS SBS what expectations it had of usage of payday …
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Government Response
The government disagrees with the implied recommendation to regulate salary advance schemes, stating they do not typically involve credit, show no substantive evidence of consumer detriment, and regulation would impose unnecessary costs. It welcomes an industry-led code of practice and will engage with its development.
HM Treasury
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30
Recommendation
Rejected
Thirty-Fifth Report - The pharmacy…
The Woolard review noted that the salary advance schemes market was predominantly found in the...
The Woolard review noted that the salary advance schemes market was predominantly found in the hospitality, retail and healthcare markets and was still in a stage of relative infancy. It stated that salary advances could result in some users experiencing …
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Government Response
The government rejects the recommendation to urgently consider regulation for salary advance schemes, stating that they generally fall outside credit regulation and there's no substantive evidence of consumer detriment to merit it. However, it welcomes and will engage with the development of an industry code of practice.
HM Treasury
View details
31
Conclusion
Rejected
Thirty-Fifth Report - The pharmacy…
Greensill Capital’s approach coincided with NHS trusts’ own research into salary advance scheme providers in...
Greensill Capital’s approach coincided with NHS trusts’ own research into salary advance scheme providers in the context of staff financial wellbeing and employee benefits. NHS trust working papers also showed that employers considered the service could provide additional benefits, including …
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Government Response
The government disagrees with the need for regulation of salary advance schemes, stating it has not seen substantive evidence of consumer detriment and believes existing frameworks are sufficient. It welcomes the development of an industry code of practice and will engage with it.
HM Treasury
View details
32
Conclusion
Rejected
Thirty-Fifth Report - The pharmacy…
We asked if there were lessons particularly for the Department about promoting these products that...
We asked if there were lessons particularly for the Department about promoting these products that have no FCA imprint. An employee on a low salary might decide to take some early advance and it is not actually a regulated product …
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Government Response
The government rejects regulating salary advance schemes, stating they generally fall outside credit regulation, show no substantive consumer detriment, and thus do not merit regulation. It welcomes an industry code of practice and will monitor for future consumer detriment.
HM Treasury
View details
Correspondence 2 letters
6 Dec 2021
Correspondence from NHS Business Services Authority relating to NHS Supply Chain Finance, dated 29 November 2021
Parliament page
6 Dec 2021
Correspondence from the Department of Health and Social Care, relating to NHS Supply Chain Finance, dated 30 November 2021
Parliament page