Merseyside NHS workers urged to get legal advice as redundancy programmes gather pace
15/07/2026
NHS staff across Merseyside, Cheshire and Liverpool are increasingly seeking advice about what redundancy paperwork means, what they are being asked to sign, and whether they may be giving up important employment rights.
The warning follows national research by UNISON, which says at least 21,000 NHS roles are due to be cut by 2028 as trusts face major financial pressure. The union reported that NHS providers had run up a combined deficit of more than £1.1bn, with workforce reductions being used by many organisations as part of efforts to balance budgets.
The impact is already being felt locally. NHS University Hospitals of Liverpool Group said in an update on 20 April 2026 that it had received more than 660 voluntary redundancy applications and was working through applications in phases, with approved cases moving on to settlement agreements and leaving arrangements.
The Liverpool group includes some of the region’s best-known hospitals and services. Liverpool University Hospitals NHS Foundation Trust and Liverpool Women’s NHS Foundation Trust came together as NHS University Hospitals of Liverpool Group in November 2024, covering Aintree University Hospital, Broadgreen Hospital, Liverpool Clinical Laboratories, Liverpool Women’s Hospital and the Royal Liverpool University Hospital.
Wider integration plans across Liverpool’s adult acute and specialist providers also include Liverpool Heart and Chest Hospital NHS Foundation Trust and The Walton Centre NHS Foundation Trust.
Alder Hey Children’s NHS Foundation Trust has also been reported to be considering voluntary redundancy as it looks to make savings of around £20m over the next 12 months, with the trust saying it is facing some of the toughest financial pressures in its history.
Meanwhile, Cheshire and Merseyside Integrated Care Board, like other ICBs across England, has been operating within national cost-cutting pressures. Integrated care boards were previously tasked with reducing running costs, with staffing identified nationally as one way of meeting those targets.
The language used in NHS exit processes can be confusing. Staff may see references to voluntary redundancy, MARS, settlement agreements or reaffirmation certificates. The firm’s new guide explains that voluntary redundancy usually means agreeing to leave as part of a redundancy process, MARS stands for Mutually Agreed Resignation Scheme, and a settlement agreement is the legal document that records the terms of an employee’s exit.
Independent legal advice is particularly important where a settlement agreement is involved. For the agreement to be legally valid, an employee must receive independent legal advice before signing. The agreement will usually deal with pay, notice, tax wording, confidentiality, and the employment claims the worker agrees not to bring after leaving.
NHS employees are entitled to choose their own solicitor and do not have to use a solicitor suggested by their employer. In many NHS settlement agreement cases, the employer contributes around £500 plus VAT towards the cost of independent legal advice, which is often enough to cover the standard advice needed on the agreement.
Jon Heath, Head of Litigation and Employment Law, said: “For many NHS workers, this is an incredibly stressful time. People may be receiving paperwork with short deadlines and little explanation, while also worrying about their future income and career. Our message is simple: do not sign anything until you understand exactly what it means.
“A settlement agreement can affect your notice, redundancy pay, tax position, confidentiality obligations and your right to bring a claim later. Independent legal advice is not a box-ticking exercise. It is there to protect employees and make sure they know what they are agreeing to.”
Our free NHS Voluntary Redundancy Guide has been written to help NHS employees make sense of the process and prepare for the decisions ahead. Follow the link to download the guide.
NHS employees affected by the current redundancy and restructuring programmes can contact Jon Heath and the employment team on 0151 480 5777 or fill out the contact form to arrange an appointment.
We can usually offer appointments in person or by Teams within two working days, and can often move more quickly where deadlines are urgent.
