Health Minister writes-off £470m owed by NHS organisations in Wales

Since 2014 the Welsh Government has provided strategic cash support of £470m for historic debt and this will now not have to be repaid. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Mr Gething said: “It is now six years since the NHS Finance Act 2014 introduced the duty to break even over a three-year period. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

This year’s accounts show four health boards haven’t been able to operate within their budgets since 2014 and together have amassed deficits of more than £600m. We have provided strategic cash support of almost £470m to these health boards over this period. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

This level of historic deficit is clearly a barrier to the NHS as it starts to plan for the term recovery from the coronavirus pandemic and it holds these health boards back from achieving financial balance. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Until now, there has been an expectation NHS organisations would repay this deficit and the cash support. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

To do this, they would need to generate underspends. I have decided the £470m of cash support will not need to be repaid and when an organisation achieves its three-year break-even duty, it will not be required to repay any historic deficits. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

This will provide certainty to these organisations, helping them to focus on the immediate recovery from coronavirus, while also planning for the future and striving for financial balance.“ ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

A summarised account of the Health Boards, NHS Trusts and Health Education and Improvement Wales, will be published in August following sign-off by the Auditor General for Wales. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

In April, The UK government announced over £13 billion of debt will be written off as part of a major financial reset for NHS providers. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​