Salaries of fat cat NHS chiefs soar

Salaries for health managers are costing London taxpayers £195 million a year - a rise of £5 million. Bosses of primary care trusts are benefiting from annual incomes averaging more than £100,000 - with even chiefs in charge of trusts reporting losses receiving substantial financial rewards.

The Conservatives, who obtained the figures, today accused the Government of allowing spending on "fat cat" managers to rise unchecked. Shadow health minister Mike Penning told the Standard: "Fat cat managers are being paid six-figure sums but taxpayers are not getting value for money.

"The Government has allowed spending on management to spiral out of control. They're all supplying identical services yet there is a huge variation in what different PCTs are spending."

The picture is similar across the country with trusts in England spending a total of £1,118 million over the last year, a £26 million rise. But in London the spend per head on chief executives, chairmen and finance directors was more than anywhere else.

Six out of the 10 highest spending health trusts are in the capital including Kensington & Chelsea as well as Westminster. Kingston is also among the highest spenders and its costs have increased by a quarter over the last year.

The average cost to the taxpayer is now equivalent to £24 a head. In some cases, PCTs have hired more managers but this has failed. PCTs have been criticised for financial mismanagement after overcommissioning services from hospitals which left them millions in the red.

The Government cut the number of NHS trusts by nearly half from 303 to 152 in a bid to make £250 million savings and reduce administration costs by at least 15 per cent.

But more than half of London trusts have failed to curb spending on bosses and admin. Hillingdon's management bill has risen by almost half despite being in financial debt. Yet Hilary Pickles, their executive of public health, was paid more than £125,000 last year.

Kingston, which also has a cash deficit, spent the equivalent of £34.67 per head. Chief executive Paul Holmes, who left in November last year, was on a salary of £115,000.

NHS London said it was unable to comment on the figures but said the numbers of management staff on the payroll had reduced.