“Failing” NHS managers will be denied pay rises if they do not improve patient care or get their finances in order, the Health Secretary will say.

Wes Streeting will tell staff at the NHS Providers Conference in Liverpool on Wednesday that “there will no longer be rewards for failure”.

Under the plans, senior NHS staff who run large deficits or provide poor services to patients will not be eligible for pay rises.

Mr Streeting will explain that senior managers, such as chief executives, will be affected if they fail to improve the performance of their NHS trust, prevent staff from fulfilling their roles or deliver poor levels of patient care.

It will also set out how NHS trusts could be banned from using agencies to fill staff shortages, such as healthcare assistants and cleaners, in a bid to reduce the £3bn a year spent on temporary workers.

NHS staff who leave their permanent jobs could also be blocked from returning to the health service through expensive agencies.

On senior executive pay, Mr Streeting said: “I am prepared to pay for the best and will champion financial incentives to attract and retain talented people in the NHS.

“It is a large organization that should compete with global companies for top talent.

“But there will be no more reward for failure.

“We need to rein in runaway spending and make sure every penny paid into the NHS benefits patients – the changes won’t be popular, but it’s a matter of reform or die.

“The Budget has made the investment the NHS needs. The reforms I am announcing will ensure results for taxpayers and patients.

In his review of the NHS earlier this year, Lord Darzi found that the only criterion by which executive pay was set was the organisation’s turnover.

According to the Department of Health, pay currently does not take into account how long patients wait for care, the quality of care, the efficient functioning of the NHS or financial gaps.

The new remuneration framework for very senior executives will be published before next April, he adds.

On agency spending, Mr Streeting will announce a consultation proposing a ban on the NHS using agencies to hire Band 2 and 3 workers such as healthcare assistants and domestic help.

NHS staff would also be prevented from resigning and then immediately offering their services to the health service through a recruitment agency.

Mr Streeting said: “For too long, desperate hospitals have been forced to pay huge sums for temporary staff, costing taxpayers billions and removing experienced staff from the NHS. We are not going to let the NHS be ripped off again.

“Last month the Chancellor made a historic investment in our health system which must reform or die. I am determined to ensure that money is well spent and helps patients.

“These changes could help retain staff in the NHS and provide significant savings to reinvest on the frontline. »

The Department of Health said recruitment agencies had charged NHS trusts up to £2,000 for a single nursing shift due to staff shortages, made worse by the strike.

It argues that the new rules mean greater fairness in the workplace by ensuring that staff carrying out the same roles do not receive significantly different pay.

Last week a BBC News investigation revealed senior doctors were charging the NHS overtime as pressure to reduce waiting lists sees some earning more than £200,000 a year from extra work .

At least half of the 41 hospital trusts that responded to BBC News pay some of their consultants more than £100,000 in overtime.