Centralised pay settlements in the NHS are killing patients because hospitals cannot recruit sufficient skilled staff, according to leading economists.

Wage controls under which nurses’ pay is set with relatively little extra for working in London or the south-east mean that hospitals in these high-cost areas struggle to recruit and retain staff, according to Carol Propper and Jan Van Reenen, professors at Bristol University’s Centre for Market and Public Organisation and the London School of Economics’ Centre for Economic Performance.