Get all your news in one place.
100’s of premium titles.
One app.
Start reading
The Guardian - UK
The Guardian - UK
Politics
Denis Campbell Health policy editor

NHS deficit soars to £1.6bn

 The grim financial picture is unprecedented in the NHS’s history
The grim financial picture is unprecedented in the NHS’s history Photograph: Christopher Furlong/Getty Images

The NHS’s deficit in England soared to £1.6bn in the first half of this year, almost double the £930m overspend it recorded in the first three months, new official figures reveal.

The service’s finances sank even further into the red over the summer as hospitals had to hire extra staff to maintain quality of care and deal with both rising demand from patients and large numbers of patients who could not be discharged from hospital because of inadequate social care.

That was £358m worse than expected and was partly because hospitals’ increasing difficulty in recruiting enough staff forced them to spend £900m more than planned on agency staff.

The grim picture – unprecedented in the NHS’s history – is detailed in the latest data on NHS financial performance, which has just been published by Monitor and the NHS Trust Development Authority, the bodies which oversee NHS foundation trusts and non-foundation trusts respectively.

Many hospitals which had previously posted surpluses sank into deficit, the figures show.

Based on current performance, the NHS’s English trusts are predicting they will end the year £2.2bn in deficit, with 156 out of 239 of them recording deficits, Monitor said.

NHS deficit chart

The two regulators highlighted the damaging effect that hospitals’ inability to discharge patients who doctors believe are fit to leave – delayed discharges – was having on them delivering key NHS waiting times.

“In particular, delayed transfers of care – where medically fit patients cannot leave hospital because the care they need is not yet in place – are having a negative impact on NHS organisations meeting other standards, especially in A&E, while spending on agency staff is continuing to have an extremely detrimental effect on their financial position,” they said.

The data revealed that:

  • Overall, the NHS provider sector reported a year-to-date deficit of £1.6bn – £358m worse than planned at the start of 2015-16.
  • Delayed discharges are estimated to have cost NHS providers £270m over the first six months of this financial year.
  • NHS care providers spent £1.8bn on contract and agency staff – almost double what they planned.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.