The NHS has been accused of "rewarding failure" after it emerged that a hospital trust's chief executive left with a £231,000 pay-off.

East Sussex Hospitals NHS Trust had repeatedly refused to disclose the sum paid to its former chief executive, Annette Sergeant. But the "termination payment" - almost £100,000 more than Ms Sergeant's annual salary of about £145,000 - was revealed in the trust's accounts yesterday. The pay-off has angered campaigners and MPs fighting to save services.

Eastbourne Conservative MP Nigel Waterson said people would be "staggered" to learn of the size of the payment.

He said: "The scale of this payment seems to me impossible to justify, especially as Ms Sergeant later took on the role of chief executive in another hospital's trust. This seems to be yet another example of the NHS rewarding failure."

The trust, which runs Eastbourne District General Hospital and the Conquest Hospital in St Leonards, ended the last financial year with a £5 million debt.

It is planning to axe 250 jobs, cut back on agency staff, cut the number of beds and close six gynaecological wards at Eastbourne.

A spokesman for Unison in Sussex said: "The idea of senior managers getting lump-sum payments like this at such a difficult time is not good for morale and will make a lot of people very angry."

The pay-out would have provided enough money for the annual pay of 12 newly-qualified nurses on a starting salary of about £19,000.

Ms Sergeant went on leave from the trust in June last year for "personal reasons" and left the following October.

The trust is now in danger of losing accident and emergency and maternity services at either or both of its hospitals as part of a wide-ranging review of all hospitals in Sussex aimed at reducing debts of more than £100 million.

News that Ms Sergeant was likely to have received a large pay-off last year was immediately criticised. The Argus made a request for disclosure of the amount under the Freedom of Information Act but this was refused by managers. The request was refused again when The Argus appealed.

Ms Sergeant joined the trust in April 2002, when it was created from the merger of Eastbourne Hospitals and Hastings and Rother NHS Trust. She was replaced last year by Kim Hodgson from East Kent Hospitals NHS Trust.

A damning report published by the Healthcare Commission this January revealed allegations made by staff while Ms Sergeant was in charge.

They included claims that:

*management were "dictatorial and inconsistent";

*20 per cent of staff who complained about being bullied and harassed quit as a result;

*13 per cent of those who complained were advised not to make a complaint because it would be held against them personally.

The trust said some allegations were later found to be unsubstantiated.

The commission found the perception of bullying and harassment among staff was high but said there was no evidence it was higher than similar-sized trusts. However, inspectors criticised managers for not taking action and said the tone set by Ms Sergeant and the board allowed perceptions of bullying to continue.

The chairman of the Trust, John Lewis, said: "The sum paid was in recognition of the need to draw the leadership matter to a speedy conclusion and allow the trust to move forward."