Budget: Welsh Government increases NHS funding by 4%

The Welsh Government has announced a significant investment in the National Health Service (NHS), committing an additional £450 million in revenue funding for 2024-25.

This increase brings the total annual funding for Health and Social Services in Wales to £11 billion, reflecting the government’s continued commitment to supporting the NHS and local healthcare services.

Presenting the draft budget on Tuesday, Finance Minister Rebecca Evans highlighted the difficult decisions made to radically redesign spending plans, focusing on services crucial to the people of Wales.

“After 13 years of austerity, a botched Brexit deal, and the ongoing cost-of-living crisis, this is the toughest financial situation Wales has faced since the start of devolution,” Evans stated.

The funding settlement from the UK government, she noted, does not fully reflect the extreme pressures Wales faces.

The NHS in Wales is currently facing a surge in demand for its services, coinciding with escalating costs of care, including staffing and treatment.

These pressures are not unique to Wales but are common across health services throughout the UK. In Wales, with a population of just over 3 million, approximately 2 million people are in contact with the NHS each month

This includes 1.5 million people accessing primary care services and another 1.5 million referred to secondary care services annually.

The additional £450 million funding, which is a reshaping of the existing spending plans, comes on top of the £425 million provided in October for the 2023-24 financial year.

This represents an increase of more than 4% for 2024-25, compared to less than 1% for the NHS in England.

Despite this increase, the Health and Social Services MEG (Main Expenditure Group) will need to reprioritise to support the NHS in maintaining core services amid extreme budget pressures and rising public demand.

Health boards in Wales will still face tough decisions in managing their budgets for the year.

Darren Hughes, director of the Welsh NHS Confederation, commented on the Welsh Government’s 2024-25 Draft Budget, acknowledging the challenging public finances across the UK.

He highlighted the ‘perfect storm’ faced by the NHS in Wales, with rising healthcare costs and increasing demand and expectations.

Hughes emphasised the need for longer-term financial certainty to plan and deliver quality services and achieve the best outcomes for patients.

He also noted that while the NHS receives a significant portion of the Welsh Government budget, it is only one factor contributing to the population’s health.

Hughes called for sufficient funding for sectors impacting wider determinants of health, including social care.

He stressed the need for further capital investment in the NHS’s estates and infrastructure to improve efficiencies, ensure sustainable service delivery, and meet Wales’ Net Zero targets.

He said: “We need an open and honest conversation with the public about what the future health and care service looks like to ensure future sustainability.”

“The whole public service must ensure any spending decisions are planned to make the biggest impact on the lives of the communities they serve, supporting the health and wellbeing of the population, tackling inequalities and responding to the cost-of-living crisis to prevent further harm to the most vulnerable.”