On the other hand Private Sectors are profit-making providers; their aim is to generate profit from their provided products and services. Private sectors usually consists of commercial operators and private companies which are owned by individuals, private sectors services are run like businesses which include a wide range of services such as hospitals, catering accommodation and entertainment in many occasions it also includes self-employed practitioners .On the other hand the independent sector manages independently for national or the local government; however there are certain guidelines and legislation which they must comply with, voluntary sectors include charities which are non profit organisations.
Funding
There are many relevant streams of funding available for the Public Sector, which covers many funding source, which include:
- Funding from the central Government
-
The National lottery
- Fund raising
- Taxation
Funding from central government
The NHS is funded by central government, however central government also gives money to the local authorities and the total amount which they give is considered by the department of health as the NHS choices is owned by it. This department also controls the NHS as well as England’s 10 other Health Authorities (SHAs). The SHA also supervises the NHS movements and all the NHS trusts in its area.
However when it comes to funding a formula is used, this formula is called Standard Spending Assessment (SSA). This is formula is made use of in order to determine how much each authority should receive which is then distributed through the revenue support grant. The SSA also takes account of many things and is based on the size, age and the health of their resident population.
It also takes account of the number of single parent families, the number from people from ethnic minority backgrounds; they then split the funding in to three main categories which are services for children, residential care for older people and domiciliary care for older people. On the other hand NHS receive their money when the department of the Health allocate money to the health authorities and also decide how much money should be spend on the NHS per year and they do this by using the formula.
Funding mechanism
Funding from the lottery
Funding from the lottery is given away in three categories which either award for, heritage funding or Nesta. Award for all is for local communities whilst heritage funds serve for local and national heritage sites and on the other hand Nesta is for exploring new and innovative ideas.
However the National Lottery is one of the main sources of funding which is sustained by a private company named Camelot, and it is run on license.
A Political Editor name Collin Brown had written an article on the Independent about the NHS lottery aid. Editor had mentioned that the health service was receiving a total of £300m from the lottery New Opportunities Funds. This money was given to use on families and children who are terminally ill, suffering from cancer. This money was also used to support hospices and to also give hospice respite breaks to people who were terminally ill. This information had hit the news as the original funding amount was £150m but it had doubled and therefore the extra cash had been used to support other schemes such as reducing strokes and heart diseases, it was also used on buying cancer care equipment.
Pay
Statutory Maternity pay (SMP)
In order to meet the requirement to receive maternity payment from the statutory sector, women must be employed by the same employer for up to 26 weeks into the 15th week before the baby is due otherwise they are not eligible. This type of payment received from the employer on a week to week basis.
Statutory Sick pay (SMP
Statutory Sick Pay is received when an employee cannot attend work if they are ill. Therefore they become entitled to statutory sick pay (SSP). Whether an employee receives SSP or not it is all down to the contract of their employment, however when the employee attends work after their days off it is necessary they provide a written statement.
Pension
Public sector pensions
In the guardian it stated that the liberal Democrat Treasury Spokesman Vince Cable was the first to make the cuts on the public sector pensions. He has feels that public sector pensions are minimising countries finance as they are paying generous retirement income to nurses and social workers. However the previous week to before the speech the government decided to restrict the bill to the tax payer.
Job role 1
A Children’s Nurse
The NHS
The National Health Service (NHS) came into operation on the 5 July 1948 through the National Health Act 1948. The NHS is a health care service which is provided by the statutory sector; the NHS health care system is funded by the government and it is also the world’s largest publicly funded health service. The NHS and provides healthcare services to UK residents in the United Kingdom.
In the pre budget it’s stated that the chancellor has been able to offer guaranteed to increase in spending on front line NHS and schools for two years from 2011. However he had also declared that there will also be sufficient funding in hospitals and schools over and above inflation. This is so the NHS could meet the guaranteed public service and entitlement which it has set out.
The agenda for change
The major icon of the pay system on the NHS pay system is the Agenda for change which was established in 1948 and it now covers over one million NHS staff in the UK. Alternatively people employed by the NHS are paid directly from central government funds and the money comes through either from taxation (income tax, council tax), the lottery, fund raising activities or donations.
Taxation
National Insurance and Income Tax
National insurance contributions are paid by those who are either an employee or self employed and is over the age of 16 and your earnings are more that a certain level. When you reach a state retirement age you can stop paying this contribution this age is currently 65 for men and 60 for women, however recent reports show this may gradually change and increase over the period 2010 to 2020.
In recent reports it states that national insurance may go up 0.5% f than previously planned and 1% cap on public sector may rise, Alistair Darling in his pre-Budget has announced this may take effect between 2011 and 2013. On the other hand before the general election the Alistair Darling had also publicised a bank bonus tax.
Taxation is a form of collecting money to pay for the public services, such as the health and the education and it is one of the most important methods. Income tax is paid from an individuals earning, the system which does this is called the Pay as You Earn (PAYE). People who earn more money pay more tax and those on low income pay no tax at all. Therefore with this you are only taxed on taxable income which includes rental income and income which is given to by a trust. It may also include your earnings from employment and certain pension schemes such as the state pensions. However The amount of tax a person may have to pay will depend on many aspect, , but one key aspect is based on how much money a person makes and in some cases you may not have to pay tax.
Job role 2
Primary School teacher
A profession of a primary teacher is a fulfilling yet a challenging job due to impact they have on the lives of the students who they teach. Their job included teaching children discipline from when they are very young and taking responsibility for their progress in learning
Part time and full time primary school teachers are automatically enrolled into the Teachers Pension Scheme (TPS) when they start work unless they decide not to. In the year beginning of 2007 there had been many changes made to the TPS, this changes include the choice to draw up to 75% of the value from your benefits although you may still decide to work, other changes are you receive pension of your choice for instance you may decide to base you pension on your pervious salary. On the other hand a phased retirement may also be an option for you according to teacher’s pension news letter ‘If you opt for phased retirement, you will receive part of your pension benefits alongside your earnings, which will be reduced by at least 25% for a minimum of one year following the commencement of your phased retirement’.
The local council
Local Authority
Employees working in the public sector have their wages paid by the government, therefore people who working in education are paid by the local authority an example of a local authority is the Oldham Metropolitan Borough Council.
The structure of the government in England is split up in to five different types of local authorities which are single tier and two tier authorities and the single tier authorities the metropolitan authorities, London borough and the unitary or shire authorities. The Local authorities services in a region is provided by the single tier authority, the services the local authority provides are education, housing, trading standards, emergency planning and social services.
On the other hand the two tier structure is divided in two levels which provides for the county and district. For the district it provides street cleaning, parks, lands and environmental health and for the counties it provides Education, highways and transports.
