Bailiffs used to pursue NHS staff over pay errors

An alarming trend has emerged within the National Health Service, where payroll errors are leading to thousands of dedicated healthcare professionals being pursued by bailiffs for overpaid wages. A BBC investigation, utilizing Freedom of Information requests, has uncovered a significant increase in these referrals, with numbers rising from 1,807 in the 2020-21 financial year to 2,683 in 2024-25. These figures paint a stark picture of an administrative failing that is causing considerable distress, anxiety, and financial hardship for NHS workers.

One such individual, Dr. Tom Horne, a 42-year-old father of two from Nottingham, found himself facing the daunting prospect of a court summons when he first learned of an overpayment by the Sherwood Forest NHS Trust. "They’re not thinking about the human being on the end of that debt collection letter…trying to pay their bills, live their life and pay the mortgage," Dr. Horne stated, expressing the emotional toll of the experience. His ordeal began six months after he had left the trust, having been repeatedly underpaid during his tenure. He received a substantial lump sum payment, which he assumed was correct, having no means to verify its accuracy at the time. The subsequent debt collection letter and county court date were a shock, leaving him feeling stressed and angry.

The letters regarding the alleged overpayment were sent to an address Dr. Horne had not lived at for four years, despite him having repeatedly updated his contact details with the trust. "They could have just emailed me – instead they sent it over to bailiffs," he recounted, highlighting the perceived lack of communication and empathy from his former employer. The trust’s HR team informed him they had attempted to contact him, but their chosen method of communication proved ineffective and ultimately led to a cascade of debt recovery actions. Dr. Horne felt the trust was unhelpful and unsympathetic to his situation.

The financial repercussions for Dr. Horne were significant. After covering court fees, credit card interest, and additional tax, he found himself considerably out of pocket. The original debt, estimated at £1,900, ballooned to nearly £3,000 once all associated costs were factored in. He admits to paying the inflated sum in a "panic" to avoid a County Court Judgment (CCJ), a court order that can severely impact an individual’s ability to secure mortgages or lead to higher interest rates on future borrowing. The financial strain forced his family to make difficult sacrifices, including worrying about nursery fees. Sherwood Forest NHS Trust initially denied referring employees to debt collectors but later issued an apology to Dr. Horne and pledged to learn from his experience.

The issue extends far beyond a single trust. A BBC Freedom of Information request sent to almost every NHS trust in the UK revealed that tens of thousands of NHS staff are overpaid annually, a figure that has remained consistently high over the periods for which data was available. However, the number of trusts resorting to debt collection agencies and bailiffs to recover these overpayments has seen a steady increase. Leicester University Hospitals reported the highest number of referrals, with 226 staff being passed to debt collectors in the last year. The trust stated that the use of debt collection agencies is a "last resort" and acknowledged that some cases involved historic overpayments.

Another affected staff member, Dr. Hamza Usman, experienced a similar predicament. He was overpaid for three consecutive months, despite repeatedly informing payroll of the error. Three months after finishing his employment with Somerset NHS Foundation Trust and relocating to Australia to practice medicine, his family received a letter threatening court action. Dr. Usman expressed his frustration that the trust couldn’t resolve the issue while he was still employed there. He described the situation as a "mark of the incompetence in the bureaucracy" and stressed the need for the NHS to improve its payroll processes. Somerset NHS Foundation Trust has since apologized to those affected and is working to minimize payment errors.

The severity of the situation has drawn strong reactions from trade unions representing NHS workers. Emma Runswick, deputy chairwoman for the British Medical Association, urged NHS bodies to "urgently find the resources and effort to stop this happening." Sharon Wilde, GMB’s national officer for health, emphasized that while mistakes can occur, trusts should adopt a "sympathetic" approach with staff, developing payment plans rather than employing aggressive debt recovery tactics.

In response to these revelations, NHS England has acknowledged the distress caused and has "immediately established a payroll improvement programme." Tom Simons, chief HR officer at NHS England, stated that this initiative aims to "substantially reduce payroll errors for the dozens of NHS trusts taking part." Health minister Karin Smyth echoed these sentiments, asserting that "NHS staff should not be out of pocket, threatened and pursued ruthlessly due to errors made by their employers." She stressed the expectation for trusts to adopt a "compassionate and reasonable approach with staff" when overpayment errors occur.

Devolved administrations have also responded to the issue. A Scottish Government spokesperson stated that employers are expected to work "compassionately with individuals to agree a repayment schedule." In Wales, the NHS Wales Shared Services Partnership indicated that debt collection agencies may be used as a "last resort" after all local recovery attempts have been exhausted. Northern Ireland’s Department of Health confirmed it does not use debt collection agents but may refer "some debts to small claims court."

The collective impact of these payroll errors and subsequent aggressive recovery methods is a deep-seated concern for the well-being and morale of NHS staff. The findings of this investigation highlight a systemic issue that requires immediate and sustained attention from NHS leadership and governmental bodies to ensure that those who dedicate their lives to healthcare are treated with the respect and consideration they deserve, rather than being subjected to the harsh realities of debt collection for administrative oversights. The call for a more compassionate and efficient approach to payroll management is clear, aiming to prevent further distress and financial hardship for the nation’s healthcare workforce.