Thirty-Fifth Report - The pharmacy early payment and salary advance schemes in the NHS
Select Committee
Public Accounts Committee
HC 745
4 February 2022
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Thirty Fifth report from Session 2021-22 · published 28 Apr 2022
Recommendations & Conclusions
6 results
11
Conclusion
Acknowledged
Three companies bid to be the framework supplier.
Conclusion
Three companies bid to be the framework supplier. One was discarded on failure to meet minimum quality grounds, leaving Citibank and Taulia. CCS’s commercial finance accountant’s evaluation of Taulia’s Dun & Bradstreet score and a review of its accounts required …
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Government Response Summary
The government agrees with the committee's recommendation that the Department and CCS should formalise the process for considering conflicts of interest.
HM Treasury
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12
Conclusion
Acknowledged
We asked why there was no discussion about a potential conflict of interest arising from...
Conclusion
We asked why there was no discussion about a potential conflict of interest arising from Lex Greensill providing advice on supply chain finance services and his company, Greensill Capital, then being appointed to supply these services. We asked whether CCS’s …
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Government Response Summary
The government agrees with the committee's recommendation that the Department and CCS should formalise the process for considering conflicts of interest.
HM Treasury
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17
Conclusion
NHSBSA amended PEPS within the existing arrangements from July 2020 at the request of the...
Conclusion
NHSBSA amended PEPS within the existing arrangements from July 2020 at the request of the Department. This amendment allowed pharmacies to obtain funds at the beginning of the month, prior to dispensing, thereby introducing a higher risk to the lender …
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HM Treasury
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18
Conclusion
On 1 March 2021, NHSBSA learned that Greensill Capital might be unable to fully fund...
Conclusion
On 1 March 2021, NHSBSA learned that Greensill Capital might be unable to fully fund that month’s payments to pharmacies. On the instructions of the Department, NHSBSA took emergency action to make direct payments to all pharmacies within the scheme …
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HM Treasury
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26
Conclusion
Acknowledged
The Department told the National Audit Office that its policy position on salary advance schemes...
Conclusion
The Department told the National Audit Office that its policy position on salary advance schemes is that their use is a matter for individual NHS trusts and for that reason it would not provide advice or guidance to NHS trusts …
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Government Response Summary
The government agrees with the Committee’s recommendation that the Department, working with NHSE&I, should adopt a formal process for ensuring that government advice is disseminated to NHS trust leadership, stating this recommendation has been implemented.
HM Treasury
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28
Conclusion
Acknowledged
Employer Salary Advance Schemes (ESAS, or salary advance schemes) are not regulated by the Financial...
Conclusion
Employer Salary Advance Schemes (ESAS, or salary advance schemes) are not regulated by the Financial Conduct Authority (FCA). These salary advance schemes link an employer payroll process to an employee smartphone app to offer advances of accrued earnings from a …
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Government Response Summary
The government has not seen substantive evidence of consumer detriment arising from the use of salary advance schemes and believes they can be a useful tool to help people manage their finances; however, it welcomes the development of an industry code of practice and will consider further interventions if signs of consumer detriment emerge.
HM Treasury
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