Reducing Agency Spend by 66% Through Workforce Transformation
Cheshire and Wirral Partnership NHS Foundation Trust (CWP) partnered with Agile Workforce to strengthen workforce control, improve compliance and reduce temporary staffing costs through a tailored workforce solution. Initially appointed to deliver a fully managed Neutral Vendor service, the partnership evolved to include Direct Engagement for Medical Services and a programme of Agenda for Change (AfC) alignment. Together, these initiatives transformed the Trust's temporary workforce model, delivering significant financial savings while maintaining safe staffing levels and improving operational efficiency.
The Challenge
Like many NHS organisations, CWP faced increasing pressure to control agency expenditure while ensuring high-quality patient care.
The Trust needed to:
- Reduce agency spend
- Improve compliance with NHSE Agency Rate Caps
- Strengthen payroll governance
- Encourage greater use of the internal staff bank
- Align with regional collaborative workforce frameworks
Agency workers were often paid above internal bank rates, reducing the incentive for workers to join the Trust's bank and increasing long-term reliance on agency staffing.
Our Solution
Working closely with the Trust, Agile Workforce delivered a collaborative workforce strategy built around three key areas.
Neutral Vendor
Our Neutral Vendor model introduced greater visibility and control across temporary staffing.
Every agency booking was actively managed, with rates reviewed before confirmation and negotiated where necessary to ensure compliance with regional rate caps.
This provided the Trust with greater financial control while maintaining continuity of supply.
Direct Engagement
To strengthen compliance and reduce unnecessary costs, Agile implemented a Direct Engagement model for medical staffing.
Workers were onboarded through a compliant PAYE payroll model, ensuring accurate tax and National Insurance deductions while giving the Trust full visibility and control throughout the worker lifecycle.The result was rapid adoption, significant VAT savings and improved governance.
Agenda for Change Alignment
Agile also supported the Trust in aligning agency pay rates with internal bank rates and restructuring commission costs. Removing the pay disparity between agency and bank workers created greater incentive for candidates to join the Trust's internal bank, helping reduce agency reliance without impacting staffing levels.
Importantly, the transition was achieved with zero candidate attrition.
Results
The partnership delivered measurable improvements across workforce performance, compliance and financial efficiency.
Key Outcomes
- 66% reduction in agency spend (£4.20m to £1.42m)
- 77.6% Direct Engagement uptake
- £31,270 VAT savings generated
- £11,000+ monthly ongoing savings
- 100% compliance through PAYE Direct Engagement
- Zero candidate attrition during implementation
- Improved alignment with the Midlands Collaborative Agreement
Client Feedback
"Agile has provided invaluable support in implementing Direct Engagement... their expertise and collaborative approach ensured a smooth transition, and we are now seeing both the financial benefits and improved operational efficiency of this model. Agile also worked closely with the Trust to significantly reduce agency RN spend by successfully supporting a return to compliance with NHSE Agency Rate Caps... delivered with minimal disruption... Importantly, this was accomplished without negatively impacting inpatient areas, maintaining safe staffing levels throughout. Excellent work from the Agile team."Amy Hart
Resourcing Manager – People Services
Cheshire and Wirral Partnership NHS Foundation Trust
Looking to Reduce Agency Spend?
Every NHS Trust faces different workforce challenges, but the principles remain the same: greater visibility, stronger governance and smarter workforce management deliver better outcomes.
Whether you're exploring Neutral Vendor, Direct Engagement, Master Vendor, Regional Bank or workforce optimisation programmes, Agile Workforce can help you build a solution tailored to your organisation.
Get in touch today to discuss how we can support your workforce strategy - Reach out to [email protected]