William Eichler 19 January 2018

Health funding wasted on short-term bailouts, watchdog warns

Extra health and social care funding is being used to deal with short-term pressures rather than long-term transformation, says the National Audit Office (NAO).

The NHS received an additional £1.8bn Sustainability and Transformation Fund in 2016-17 in order to support the integration of health and social care at the local level.

This helped improve the health service’s financial position, taking it from a £1,848m deficit in 2015-16 to a £111m surplus in 2016-17. However, the NHS is still struggling to manage increased activity and demand within its budget and has not met its access targets.

The NAO report, published today, warns the NHS’ efforts to balance its books has ‘restricted money available for longer-term transformation’ which it argues is ‘essential’ for the sustainability of the health and social care system.

One example of such short-term thinking the auditors found was when the Department of Health and Social Care transferred £1.2bn of its £5.8bn budget for capital projects to fund the day-to-day activities of NHS bodies.

‘The NHS has received extra funding, but this has mostly been used to cope with current pressures and has not provided the stable platform intended from which to transform services,’ said Amyas Morse, head of the NAO.

‘Repeated short-term funding-boosts could turn into the new normal, when the public purse may be better served by a long-term funding settlement that provides a stable platform for sustained improvements.’

The auditors also found a similar pattern with clinical commissioning groups and trusts. They are increasingly reliant on one-off measures to deliver savings rather than recurrent savings that are realised each year.

Progress has been made in setting up 44 new partnership arrangements across health and local government, the NAO said.

However, it warns the performance of partnerships varies and their tight financial positions make it difficult for them to focus on long-term transformation rather than dealing with short-term pressures.

Responding to the report, Cllr Izzi Seccombe, chairman of the Local Government Association’s (LGA) Community Wellbeing Board, said: ‘This alarming report shows that despite receiving £1.8bn in extra funding last year, the NHS is struggling to cope with the costs of increased demand and has not been able to make enough progress in the vital long-term transformation of services because it has had to spend most its extra money on current pressures.

‘Prioritising funding for the NHS over social care will not help reduce pressures on hospitals. Instead of making costly short-term bailouts to treat the symptoms of pressures, money would be better invested in treating the causes of these pressures.

‘Government needs to give urgent funding to councils to invest in prevention to reduce the need for people to be admitted to hospital in the first place, which will help to reduce costs to the public purse.’

SIGN UP
For your free daily news bulletin
Highways jobs

Solicitor/ Barrister / Chartered Legal Executive Commercial & Contracts (x2)

Warwickshire County Council
£50,856 to £57,083 per annum
Warwickshire Legal Services (WLS) are looking for two qualified lawyers to join their award-winning, motivated, and nationally recognised legal team. Warwick
Recuriter: Warwickshire County Council

Head of Finance and Deputy s151 Officer

Conwy County Borough Council
£77,153 - £88,545
We are looking for an experienced and strategic financial leader who can operate confidently in a complex, political and fast-changing environment. Colwyn Bay, Conwy
Recuriter: Conwy County Borough Council

ICT Engineer Digital Squad

Durham County Council
£35,412 to £39,152 p.a. (Pay Award Pending)
An exciting opportunity has arisen within the Microsoft 365 Team for an ICT Engineer (Microsoft 365). This role will support Durham County Council's B Durham
Recuriter: Durham County Council

Storekeeper Driver

Durham County Council
£26,403 - £28,598
An opportunity has come up in Highways Services for a Storekeeper/Driver.  They will assist the Stores Supervisor in delivering a customer focussed St Durham
Recuriter: Durham County Council

Care Support

Durham County Council
Grade 4 £25,583 - £26,824 (pay award pending)
We're recruiting to a permanent role within our Pathways Service, which delivers day services to adults with complex needs, Monday to Friday. There i Durham
Recuriter: Durham County Council
Linkedin Banner