Pensions victory for 1,000 NHS staff is no guarantee for social enterprises

The transfer of pensions for NHS staff in north east Essex moving into a new social enterprise will not set a precedent, the Department of Health has said.

North East Essex Provider Services staff who transferred to community interest company Anglian Community Enterprise on 1 January 2011 have been told their NHS pensions are safe.

New employees of the social enterprise – one of the first set up by DH’s right to request initiative and, with a £50m turnover, believed to be one of the biggest health-providing social enterprises in the UK – will not receive an NHS pension.

Just over 1,000 employees of North East Essex Provider Services have transferred to Ace.

DH said that other social enterprises spun out from the NHS could not guarantee the transfer of pensions just because of Ace’s success.

A DH spokesperson said Ace was successful because it ‘satisfied the criteria’.

‘In this case the department [DH] was satisfied that the pensions should transfer. Applications moving forward will be accessed on a case by case basis,’ she said.

‘We do not give a blanket response and this case will not set a precedent for other NHS organisations.’

The possible loss of pensions for NHS staff transferring to social enterprises has been one of the biggest stumbling blocks for primary care trusts and NHS trusts interested in the social enterprise model, with some facing protests and votes against plans.