In March 2025, Prime Minister Sir Keir Starmer announced plans to abolish NHS England (NHSE), and confirmed the Department of Health and Social Care (DHSC) would absorb NHSE’s functions. Integrated Care Boards (ICBs) were told to cut their running costs by half and Commissioning Support Units (CSUs) were informed in June 2025 that these organisations will no longer exist.
These organisations will all offer opportunities for voluntary redundancy, as part of these system changes. Expressing an interest in, applying for or accepting voluntary redundancy is a very personal choice which needs careful consideration.
Here's information on the key areas you’ll need to explore before making a decision.
What is voluntary redundancy?
Whenever an organisation is changing, there are many ways an employer may seek to change or reduce staffing levels. Redundancy should always be a last resort after all other options have been considered, such as redeployment.
Seeking volunteers for redundancy is a legitimate way for an employer to avoid, or reduce, the need for compulsory redundancies, but there must be a fair and transparent selection process. And employees are not automatically guaranteed redundancy will be granted, even if they volunteer.
We believe that any redundancies in an NHS employer in England should match the redundancy terms set out in the NHS Terms and Conditions of Service Handbook.
What’s being offered to staff in the affected organisations?
The Treasury have agreed that a voluntary redundancy “model scheme” can be used by employers affected by these system changes, but they’ll need to run a local consultation with trade unions to outline their plans.
- In NHSE and CSUs, consultations with trade unions have already taken place and staff have been told they can apply for voluntary redundancy from early December. Decisions on redundancies will be given directly by these employers. Following this process, it’s anticipated those who have had their voluntary redundancies approved will start to leave their jobs from mid-March 2026.
- In ICBs, voluntary redundancy consultations with trade unions are beginning or are expected to begin soon. After consultations are complete, each ICB will be able to invite applications for voluntary redundancy.
What are the RCN’s concerns about these proposals?
Along with other trade unions, we have raised concerns and commented on the voluntary redundancy “model scheme” at a national level.
Trade unions haven’t agreed the scheme over concerns the redundancy terms differ from those set out in the NHS Terms and Conditions of Service Handbook.
We are concerned about the “clawback” clause, which in this instance, refers to repaying all or part of a redundancy payment under certain defined circumstances.
These include:
- the length of the clawback clause
- the range and type of employers covered by clawback.
The “model scheme” means you’ll have to wait longer, compared to the existing NHS terms and conditions, if you’d like to return to a role within the NHS or some public sector roles, in order to retain your redundancy payments.
It also has a wider range and longer lists of employers that trigger the clawback clause of your redundancy payment.
We are also concerned that settlement agreements are being used for voluntary redundancy. These are legal agreements between an employer and an employee that end your employment and limit any future legal action you could take against your employer.
I’m interested in taking voluntary redundancy. What do I need to consider?
Whether or not to volunteer for redundancy is an individual choice. You’ll need to thoroughly consider your personal situation, including your finances, pension, professional registration and the full details of any offer – including any restrictions that may be placed on you.
Here are some examples of what you should be considering:
- your redundancy package (the pay you would receive, and any other benefits/incentives)
- the proposed end date of your contract (including whether there is any element of pay in lieu of notice and what happens to any accrued annual leave)
- the potential impact on your occupational pension (you can find out how to access pension estimates on the NHSBSA website)
- any rules in place about re-engagement or re-employment (for example, returning to work for certain employers within a certain period of time)
- arrangements for employment references, when seeking future work
- arrangements for the return of any work property/equipment, and arrangements for your lease car, if you have one.
You’ll also need to read the relevant sections of the NHS Terms and Conditions of Service Handbook, as these form part of your contractual terms.
We suggest that you read information about the NHS pension scheme (if you’ve joined the scheme), and relevant local policies too, to check all processes are being followed correctly.
I’m partially retired: will this affect a voluntary redundancy offer?
If you’re a member of the NHS Pension scheme thinking of applying for voluntary redundancy and you’ve partially retired, it’s worth noting that your contractual redundancy payment will only be based on NHS reckonable service.
This is set out in section 16 of the NHS Terms and Conditions of Service Handbook. You can also read the RCN position statement on partial retirement and redundancy for more information.
How can I prepare for a one-to-one meeting about voluntary redundancy?
If you’re considering voluntary redundancy, we recommend you have a one-to-one meeting with your employer, so you get clear answers to any questions you have.
Read the redundancy and reorganisation: one-to-one meeting checklist for tips on how to prepare for before, during and after a one-to-one meeting. From planning your list of questions to deciding if you need support at the meeting and who you could take with you, our one-to-one meeting checklist will help you get the best from your discussion.
How can the RCN support me?
“The RCN’s priority is to protect nursing jobs and uphold NHS contractual terms and conditions,” says Brian Morton, Associate Director Employment Relations.
“We’ve opposed this 'model scheme' where it differs from the NHS Terms and Conditions of Service Handbook, particularly the clawback provisions and settlement agreements.
“These changes come at a time of major NHS restructuring during which the RCN will remain committed to safeguarding nursing roles and standards."
- If you’ve received an offer of voluntary redundancy from one of the affected NHS organisations, you’ll be offered a settlement agreement. If you’re considering entering a settlement agreement, you’ll need formal advice on the legal implications of the agreement before signing it. We strongly recommend that RCN members contact the RCN advice team, who’ll refer your case for appropriate support and advice.
- If you feel the redundancy process isn’t being followed fairly, or you feel pressured into taking voluntary redundancy, particularly if you have any protected characteristics that you think may be influencing processes or decisions, please reach out to the advice team, too.
- We’re holding online meetings to engage with members about voluntary redundancy. Find out more.
Further information
- Our England NHS system organisations webpage is updated regularly with the latest advice, resources and information.
- Read our position statements on voluntary redundancy and partial retirement and redundancy.
- Read our redundancy and reorganisation: one-to-one meeting checklist so you’re fully prepared. There’s also a one-to-one advice leaflet which you might find helpful.
- If you want to read about the wider system reforms planned for the NHS, read our RCN systems reform crib sheet.
