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NHS England boss calls for extra budget funds to cope with rising demand NHS won't cope with rise in demand without more money, boss tells MPs
(about 1 hour later)
The health service must receive more money in next month’s budget or it will not be able to cope with rapidly rising demand for care, the boss of the NHS in England has warned Theresa May. The health service must receive more money in next month’s budget if it is to cope with the rapidly rising demand for care, the boss of the NHS in England has warned Theresa May.
Simon Stevens made clear to MPs on Tuesday that the sums the government has earmarked to fund the NHS in the next two years are not enough and need to be “amended”. Simon Stevens told MPs on Tuesday that the funding the government has earmarked for the NHS in the next two years is not enough and needs to be “amended”.
Asked about the NHS’s funding at a session of the House of Commons cross-party health select committee, the NHS England chief executive said: “Looking forward to the pencilled-in funding for the next year and year after. It looks extremely challenging”. Asked about the NHS’s funding at a session of the Commons cross-party health select committee, the NHS England chief executive said: “Looking forward to the pencilled-in funding for the next year, and year after, it looks extremely challenging.”
If the sums allocated were not amended it would be “very hard” for the NHS to do what it is being asked to do for the next two years, he added. If the sums allocated were not amended it would be “very hard” for the NHS to do what it is being asked to do, he said.
“Decisions taken on 22 November will determine the shape of the NHS for the next two years,” Stevens added. “Decisions taken on 22 November will determine the shape of the NHS for the next two years.”
Underlining how much less the UK puts into healthcare than other major European countries, Stevens added: “We’re spending £23bn a year less on the NHS than if we were spending at Franco-German levels – and there are consequences of that.” Comparing the amount the UK puts into healthcare against other major European countries, Stevens said: “We’re spending £23bn a year less on the NHS than if we were spending at Franco-German levels – and there are consequences of that.”
The NHS chief added to the pressure on May and the chancellor, Philip Hammond, over NHS funding by declaring that next year’s pay rise for NHS staff would have to be funded by the government, and not from within the NHS’s budgets. The NHS chief added to the pressure on Theresa May and the chancellor, Philip Hammond, over NHS funding by declaring that next year’s pay rise for NHS staff would have to be funded by the government, not from NHS budgets.
His remarks flag up a key difference of opinion with Jeremy Hunt, the health secretary, who earlier on Tuesday told MPs the 1%-a-year pay cap for NHS was being lifted – but that increases would have to be funded from improved productivity. His remarks flag up a key difference of opinion with Jeremy Hunt, the health secretary, who earlier on Tuesday told MPs the 1%-a-year pay cap for NHS staff was being lifted – but that increases would have to be funded from improved productivity.
“The secretary of state has said earlier today that the pay cap has been lifted,” said Stevens. “That does need to be funded.”“The secretary of state has said earlier today that the pay cap has been lifted,” said Stevens. “That does need to be funded.”
Every increase of one percentage point in the pay of NHS staff in England costs the service about £500m. Health unions recently submitted a claim for a 3.9% pay rise next year plus £800 to help make up for seven years of pay freezes or 1% rises. Every increase of one percentage point in the pay of NHS staff in England costs the service about £500m. Health unions recently submitted a claim for a 3.9% pay rise next year, plus £800 to help make up for seven years of pay freezes or 1% rises.
Stevens’s message was endorsed by Jim Mackey, the chief executive of NHS Improvement, the NHS’s financial regulator. Stevens’ message was endorsed by Jim Mackey, the chief executive of NHS Improvement, the service’s financial regulator.
“If that sort of thing [the lifting of the pay cap] does happen, it needs to be funded. The NHS is delivering very serious levels of efficiency and it’s very hard to see how that would be internally financed,” he told the cross-party committee of MPs. “If that sort of thing [the lifting of the pay cap] does happen, it needs to be funded. The NHS is delivering very serious levels of efficiency and it’s very hard to see how that would be internally financed,” he told the committee.
Stevens said it was not “reasonable” to expect the NHS’s 1.4 million staff in England to keep having to receive real-terms cuts to their pay “indefinitely”, but that any rises would need to be funded outside the existing pay settlement. Stevens said it was unreasonable to expect the NHS’s 1.4 million staff in England to keep receiving real-terms pay cuts indefinitely, but that any rises would need to be funded outside the existing pay settlement.
The Department of Health’s budget is £123.7bn this year, 0.55% more than last year’s £123bn. It is due to go up to £124.4bn next year – a rise of just 0.58% – and then up again to £125.1bn in 2019-20, a year-on-year increase of only 0.55% again. The Department of Health’s budget is £123.7bn this year, 0.55% more than last year’s £123bn. It is due to go up to £124.4bn next year – a rise of 0.58% – and then up by 0.55% to £125.1bn in 2019-20.
NHS finances experts say Hunt’s expectation that enhanced productivity will generate funds for the pay rise are unfounded and unrealistic.NHS finances experts say Hunt’s expectation that enhanced productivity will generate funds for the pay rise are unfounded and unrealistic.
“Deliberate government policy over the last seven years has been to cut the amount trusts are paid year after year for each patient,” said Sally Gainsbury, of the Nuffield Trust health thinktank.“Deliberate government policy over the last seven years has been to cut the amount trusts are paid year after year for each patient,” said Sally Gainsbury, of the Nuffield Trust health thinktank.
“A hospital today is paid around £760 to treat a patient they would have received £1,000 to care for in 2010. Hospitals have tried to cope with those cash and real terms cuts by cutting their costs, but they haven’t been able to keep up, which is why they overspent by an underlying £3.7bn last year. “A hospital today is paid around £760 to treat a patient they would have received £1,000 to care for in 2010. Hospitals have tried to cope with those cash and real-terms cuts by cutting their costs, but they haven’t been able to keep up, which is why they overspent by an underlying £3.7bn last year.
“This year they have been asked to make a further £3.6bn in efficiency savings to help the government balance its books. That’s twice as much as the government’s own review into hospital waste found was possible.”“This year they have been asked to make a further £3.6bn in efficiency savings to help the government balance its books. That’s twice as much as the government’s own review into hospital waste found was possible.”