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NHS cash lures for GPs and nurses 

By: John Carvel
The Guardian, March 13, 2001 

A golden handcuff scheme to keep GPs working until 65 and more generous bursaries to attract student nurses will be announced by the government today to address the staffing crisis in the NHS. 

Alan Milburn, the health secretary, will promise to spend £56m each year on a range of incentives to ensure that the NHS expansion plan is not derailed by labour shortages.

Newly qualified GPs will get £5,000 golden hellos to work in "under doctored" areas in England where there are less than 52 GPs per 100,000 patients. There will be a £10,000 loyalty bonus for GPs who soldier on from 60 to 65 to deter premature retirement. They will be allowed to invest a nest egg in an ISA or other security to mature on their 65th birthday. Pro rata payments will be offered for those who undertake the task but have to drop out early through ill health. Student nurses, midwives and therapists will get a 10.4% increase in bursaries currently worth £4,085 for those on diploma courses. There will be a 24% rise in the £1,900 grant for nursing degree students. 

The money will come from the pot worth £835m over three years offered by the chancellor last week for the health service in England.

Over the next three years, £56m a year will be spent recruiting and retaining staff to end the chronic shortages of doctors, nurses and midwives. It follows warnings from doctors' and nurses' leaders that government plans to appoint 20,000 extra nurses and 10,000 more GPs by 2004 will fail unless more is done to retain existing staff and provide incentives for newcomers.