Thousands of managers face axe as NHS London fast-tracks £50m cuts

Thousands of jobs are under threat as the NHS in London prepares to cut 54 per cent of management costs to tackle its growing deficit.

The measures follow a crisis meeting at which the capital's strategic health authority decided that its target of saving £180million would have to be met within two years instead of three, as originally planned. This means it has to make an extra £50 million of savings by 2012.

The cuts come as healthcare services across the country are braced for the biggest overhaul of the NHS in decades. Several hospitals in the capital, including King George Hospital in Ilford and Chase Farm Hospital in Enfield, risk losing their A&E and maternity units.

Under NHS London's plans, the capital's 31 primary care trusts will merge their management teams with six over-arching health sectors established last year. The health authority says this will reduce duplication of roles and prepare the way for the transfer of the primary care trusts' responsibilities to groups of GPs.

Those losing their jobs will start to serve their notices by February.

In July, Health Secretary Andrew Lansley announced that management costs would be slashed by 45 per cent across the board and up to £20 billion of efficiency savings made by 2014.

The NHS White Paper published that month stated that strategic health authorities and more than 150 primary care trusts would be "phased out". An NHS London spokesman said the health authority was "sensibly planning ahead" while the White Paper is considered by Parliament. "To do this we are proposing releasing up to £50million a year earlier than we'd planned to support GP commissioning," the spokesman said. "This is a challenging task and we need to ensure we have staff with the right skills in place."

The White Paper followed a reorganisation plan announced by the Labour government last year which would have reduced the amount of work done in hospitals to help avoid a potential NHS London budget deficit of up to £860 million by 2015.

Before the general election in May, Mr Lansley announced a moratorium on the changes planned by Labour, but when it is lifted, several hospitals fear they could lose key departments.

Queen Mary's in Sidcup will close its A&E and maternity units over the next two months. South London Healthcare NHS Trust says the closures are temporary but there are concerns they could become permanent following a review into the future of the hospital.