A report on the 18 arms-length bodies (ALBs) that serve the Department of Health outlines changes expected to deliver savings of over £180m by 2014/15.

The report follows a review that looked at duplication of work between bodies, and whether functions could be efficiently carried out elsewhere.

Health secretary Andrew Lansley said: “Overlap between organisations and duplication of effort have produced a needless bureaucratic web.” He reassured staff that the department would be supporting ALBs through the transition period, adding: “By making sure that the right functions are being carried out at the appropriate level, we will free up significant savings to support frontline NHS services.”

Seven organisations will be abolished: the Appointments Commission, the General Social Care Council, the Health Protection Agency, the National Patient Safety Agency, the National Treatment Agency for Substance Misuse, the NHS Institute for Innovation and Improvement, and the Alcohol Education and Research Council. The Council for Healthcare Regulatory Excellence will become a self-funding body by charging a levy on regulators.

Two further organisations – the Human Fertilisation and Embryology Authority, and the Human Tissue Authority – have been earmarked for closure by the end of the current Parliament, subject to the creation of a single research regulator for the health sector.

Of the bodies which remain, several will be subject to reviews to consider how they can become more commercially effective, or if commercial opportunities exist in their area. Specific changes in governance or function are also outlined, including previously announced plans for foundation trust watchdog Monitor to become an economic regulator.

Further details of how Monitor’s role will change were published in consultation documents released today. The consultation also includes proposals to reduce regulation affecting foundation trusts by removing the statutory private income cap and borrowing limit; making it easier for foundation trusts to merge; and allowing more patient and employee involvement.

Full details of recommendations for each ALB can be found below.

The outlook for health quangos

Alcohol Education and Research Council
Role: Administers the Alcohol Education and Research Fund
Proposal: Abolish as an ALB and remove from the sector, while seeking to maximise the opportunities for effective cross-government policy to reduce the harm from alcohol misuse.

Appointments Commission
Role: Makes public appointments
Proposal: Abolish as an ALB during 2012 in view of the very substantial reduction in the number of appointments required. Move remaining appointments to the Department of Health.

Care Quality Commission
Role: Regulates health and adult social care provision
Proposal: Retain as quality inspectorate across health and social care, operating a joint licensing regime with Monitor. Host organisation for Healthwatch England. Current responsibility of assessing NHS commissioning moves to the NHS Commissioning Board. May gain functions from other organisations, e.g. HTA and HFEA.

Council for Healthcare Regulatory Excellence
Role: Oversees professional regulators
Proposal: Remove from the sector. Make a self-funding body by charging a levy on regulators. Extend role to set standards for and quality-assure voluntary registers.

General Social Care Council
Role: Regulates social workers
Proposal: Transfer the regulation of social workers to the Health Professions Council, which will be renamed to reflect its new remit.

Health and Social Care Information Centre
Role: Collects and provides health and social care information
Proposal: Retain, and put on a firmer statutory footing by establishing it in primary legislation. National repository for data collection across health care, public health and adult social care. Clearer focus on data collection, with a close working relationship with the NHS Commissioning Board.

Health Protection Agency
Role: Protects the health and wellbeing of the population
Proposal: Abolish as a statutory organisation and transfer functions to the secretary of state as part of the new Public Health Service.

Human Fertilisation and Embryology Authority 
Role: Regulates human embryo storage, research and assisted reproduction treatment
Proposal: Retain as a separate ALB for the time being, with the aim of transferring its functions by the end of the current Parliament. In the meantime, ministers will examine the practicalities (and legal implications) of how to divide the HFEA’s functions between a new research regulator, the Care Quality Commission and the Health and Social Care Information Centre.

Human Tissue Authority 
Role: Regulates the removal, storage and use of human tissue and organs
Proposal: Retain as a separate ALB for the time being, with the aim of transferring its functions by the end of the current Parliament. In the meantime, the government will examine the practicalities (and legal implications) of how to divide the HTA’s functions between a new research regulator, the Care Quality Commission and the Health and Social Care Information Centre.

Medicines and Healthcare Products Regulatory Agency
Role: Regulates medical devices and medicines
Proposal: Retain, but with the expectation that it will undertake its regulatory duties in the most cost-effective way.

Monitor
Role: Assesses, licenses and monitors NHS Foundation Trusts
Proposal: Retain and make an economic regulator, operating a joint licensing regime with the Care Quality Commission.

National Institute for Health and Clinical Excellence
Role: Provides national guidance on the promotion of good health and the prevention and treatment of ill-health
Proposal: Retain, and put on a firmer statutory footing by establishing it in primary legislation. Expand scope to include social care standards.

National Patient Safety Agency
Role: Promotes patient safety and manages the National Clinical Assessment Service, the National Research Ethics Service and confidential enquiries.
Proposal: Abolish as an ALB. Safety functions retained and transferred to the National Commissioning Board. Explore transfer of National Research and Ethics Service functions to single research regulator. National Clinical Assessment Service to become self-funding over the next two to three years.

National Treatment Agency for Substance Misuse
Role: Works to increase the availability, capacity and effectiveness of drug treatment in England  
Proposal: Abolish as an ALB, and transfer functions to the secretary of state as part of the new Public Health Service.

NHS Blood and Transplant 
Role: Provides blood, organs and associated services to the NHS
Proposal: Retain, and commission an in-depth review of opportunities to make more commercially effective. Transfer Bio-Products Laboratory out of NHSBT into a Department of Health-owned company.

NHS Business Services Authority 
Role: Provides central services to the NHS
Proposal: Retain in short term, and commission commercial review to identify potential for increased commercial opportunities, including potential to remove functions from the ALB sector.

NHS Institute for Innovation and Improvement
Role: Supports the NHS by spreading new ways of working, new technology and leadership
Proposal: Remove from ALB sector. Move some functions which support the NHS Commissioning Board. Review the potential for its remaining functions to be delivered through alternative commercial delivery models.

NHS Litigation Authority
Role: Handles negligence claims and works to improve risk-management practices in the NHS  
Proposal: Retain, and commission an industry review to identify potential opportunities for greater commercial involvement.