Hospital staff face pay cuts amid emergency savings with morale at ‘all-time low’

    Friday, 14 August 2026 10:15

    By Richard Hunt Local Democracy Reporter

    More than 140 members of managerial staff at Blackpool Victoria Hospital are facing demotion to a lower pay grade as part of emergency savings proposals.

    Worried and unhappy employees say they morale is at an all-time low as cash-strapped Blackpool Teaching Hospitals NHS Foundation Trust looks to make saving of around half a million pounds.

    The Trust employs 6,000 personnel providing acute and community healthcare services across the Fylde Coast, Lancashire, and South Cumbria. The staff affected by the proposals, employees at Band 6-8 level, have been informed that a 30-day consultation period has been launched into the proposals, which is due to end on August 30.

    It comes as Blackpool Teaching Hospitals NHS Foundation Trust is experiencing significant financial difficulties, as part of the wider NHS Lancashire and South Cumbria Integrated Care Board (ICB), which needs to make massive savings.

    Some staff would see pay cuts by as much as £300 a month – up to £3,600 a year.

    ‘A worrying impact on patients’

    A senior operations manager, who did not want to be named, said: “Blackpool is one of the most challenging areas in the country, with some of the poorest health outcomes, and they are proposing something that will have a major detrimental effect on staff.

    “They say they don’t anticipate redundancies but their plan is to pay people less – effectively demoting people but expecting the same level of work. This will destroy morale and water down the work we are doing, it will have a worrying impact on the patients and community we serve.

    “What they are proposing will reduce the strength of leadership across the board – we’re shocked, appalled and worried by these proposals.”

    They also said the Foundation Trust had sought input from a consultancy firm in London to draw up the plans. The staff have been told that following feedback from the consultation, an announcement will be made on September 16 and then put into action.

    The consultation comes just months after hospital bosses the Trust praised staff for their ‘tremendous commitment, kindness, and compassion’ after they saw their Care Quality Commission rating upgraded to ‘good’ back in May.

    This followed the previous rating in November last year when the CQC gave services a rating of

    ‘requires improvement’

    The ICB, operating within one of the most financially challenged health systems in England, is targeting an agreed deficit plan of £164 million backed by national deficit support, though broader underlying systemic deficits have historically approached roughly £350 million before funding adjustments.

    Last year it was revealed that the Blackpool Teaching Hospitals deficit (part of the overall ICB total) was around £21m, meaning it would receive national support to recover its finances.

    What the Trust says

    Maggie Oldham, Chief Executive of Blackpool Teaching Hospitals, said: “The Trust has recently carried out an important restructure of our clinical divisions.
    “This was a vital first step in making changes to the way we work including strengthening accountability, improving decision-making and making sure our services are aligned to the way patients receive their care.

    “The next step was to begin a 30-day consultation regarding the leadership arrangements of these clinical divisions. This will involve a review of management resources and responsibilities and is part of a process designed to make real improvements for patients, staff and the way we work.

    “Although 144 job roles are involved, we currently expect only a small number of these to be affected depending on the outcome of the consultation. The consultation is about receiving feedback and making sure the proposed structures can deliver safe, effective care.

    “We are working directly with colleagues who may be affected by the proposed changes and their views will be considered before any decisions are made.

    “It is important that we allow the consultation process to run its course and it would be wrong to comment on the outcome before this time.

    “I would encourage members of staff to reach out to their managers and HR representative with any concerns during this consultation.”

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