Scottish Public Sector Spends £27 Million Annually on 'Ghost Workers'

Hundreds of employees in Scotland's public sector are receiving full salaries for up to 17 years despite their roles having been eliminated, costing taxpayers an estimated £27 million annually. These individuals, often referred to as 'ghost workers,' are maintained on payrolls within the Scottish Government, NHS, councils, and quangos due to the Scottish National Party (SNP) government's prohibition on compulsory redundancies.

In one of the most extreme instances, an NHS Highland employee has been drawing a full salary for 17 years without a defined job role. Revelations of this practice have prompted calls for an investigation from public spending watchdogs.

Scottish Conservative finance and social care spokesman Craig Hoy criticized the situation, stating, "Scotland’s public sector has become a gravy train for insiders, with a ghost workforce of hundreds costing taxpayers millions every month." He added, "John Swinney talks about reform, but his no-compulsory-redundancies pledge puts protecting jobs ahead of protecting taxpayers. The Auditor General must investigate this scandal and establish how taxpayers’ money is being squandered on a system that has been allowed to spiral out of control."

The Sunday Times reported on approximately 800 cases of Scottish public sector workers without fixed roles, with salaries amounting to at least £27 million per year. The actual cost is believed to be higher, as some public bodies declined to disclose salary information for staff awaiting redeployment.

Approximately 255 workers across the Scottish public sector have been without a fixed job for over a year, and at least 49 have been in this situation for five years or more. These employees are typically placed in redeployment pools, undertaking less senior duties or ad-hoc tasks while awaiting a new permanent position.

This situation follows the SNP government's 2007 decision to ban compulsory redundancies. Recently, NHS staff in Scotland were informed they would not face compulsory redundancy amidst plans to reduce the number of regional health boards from 14 to two. Instead, they are to be retrained, redeployed, or offered voluntary severance.

Further reforms are planned across other public sector areas, including local authorities and quangos, as part of efforts to address a projected £5 billion financial deficit.

At NHS Highland, 88 workers were awaiting redeployment as of late last month. Of these, 26 had been without a permanent role for five years or more, with at least four waiting since 2015. Their employment without a specific role dates back to 2009.

NHS Highland stated it is "committed to supporting colleagues through periods of change." Other public sector organizations with multiple employees in this situation for extended periods include Police Scotland, Scottish Water, and NHS 24.

Valentin Boboc, a senior economist at the Institute of Economic Affairs, commented, "Taxpayers deserve clear evidence that public funds are used to deliver value." He suggested that while redeployment can retain skills, a guarantee against compulsory redundancy hinders managerial flexibility. "Ministers should be free to give managers the flexibility to retrain, redeploy or reduce the number of staff to ensure taxpayers get the best quality and cost for the services they want."

The total cost to the Scottish NHS for employing staff without permanent positions is estimated at £1.4 million per month, or £16.8 million annually, based on figures for 315 workers. Information for 185 employees was not disclosed.

An Audit Scotland spokesperson noted that decisions regarding public sector redundancy policies are matters of policy, outside the Auditor General's statutory remit. A Scottish Government spokesperson reiterated that the policy of no compulsory redundancies remains in place. The government expects public bodies to ensure value for money and that redeployed staff perform appropriate work for their pay grade, utilizing tools such as attrition, vacancy management, reskilling, and voluntary severance to facilitate public service reform.