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Government ploughed 'over half a billion' into cash-strapped NHS Trusts

The Government pumped more than half a billion pounds of emergency funds into cash-strapped NHS trusts last year, according to a "deeply alarming" report.

The MP who chairs the influential Public Accounts Committee said the findings by the National Audit Office showed "the future sustainability of the NHS is at risk".

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Government pumps in funds to bail out hospital trusts

It has emerged that more than half a billion pounds of emergency government money had to be pumped into the NHS last year.

The funds were to bail out hospital trusts which were in financial trouble. Auditors have warned the growing economic stress on the health service is 'not sustainable'.

ITV News Reporter Lewis Vaughan Jones has the details:

Patients Association: 'Serious questions' need to be asked

The chief executive of the Patients Association said "serious questions" need to be asked about how the "financial crisis" was allowed to develop with the NHS.

We have had a significant amount of money pumped into the NHS in the past, but patients are still receiving substandard care. We receive many calls to our Helpline about delays in treatment, incorrect diagnosis and undignified care.

We cannot use lack of funding as an excuse for poor patient care and every effort must be made to ensure that the NHS provides safe high quality care and maintains dignity for its patients at all times.

– chief executive of the Patients Association, Katherine Murphy

Ms Murphy added that there is "clearly an urgent need" for addressing these financial issues and and for targeting programmes which will "improve the funding situation" and enable better care for patients.

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NHS is 'already struggling' on important measures

The NHS is "already struggling" on important issues like A&E and cancer treatment waiting times, a healthcare campaigner told Good Morning Britain.

Anita Charlesworth said the black hole in some NHS trust's finances was so severe it would not be long before patients would start see the lack of funds "impacting".

Labour: Emergency cash shows NHS 'heading for the rocks'

Shadow health secretary Andy Burnham Credit: PA

The £511 million diverted to failing hospital trusts shows the "NHS is heading for the rocks", according to Labour.

Shadow Health Secretary Andy Burnham said the report on emergency funds used to prop up NHS bodies slipping into debt was a "devastating verdict" on coalition reforms.

This report delivers a devastating verdict on the NHS reorganisation David Cameron said would not happen. It has brought the NHS to the brink of bankruptcy by wasting £3 billion.

Across England, the NHS is running out of money and patient care is heading backwards. It is clear ministers have lost control of NHS finances, with a massive deterioration in the last year.

The NHS is heading for the rocks. It proves David Cameron cannot be trusted with it. He must produce an urgent plan to show how he'll turn the NHS around.

Labour will rescue the NHS with our £2.5 billion Time to Care package which will fund new staff including 20,000 more nurses - investment the Tories will not match.

– Andy Burnham

Govt: NHS budget 'increased by £12.7bn since 2010'

The NHS budget had increased by £12.7 billion since 2010, maintained the Department of Health, in the face of searing criticism for the National Audit Office about the amount of bailouts given to failing trusts.

The government said the majority of health providers were still in financial balance or better and said reforms had allowed doctors to "control their own budgets".

Financial discipline must be as important as safe care and good performance. Many NHS organisations are already achieving this and all understand the need for greater efficiency.

Our reforms put power in the hands of local doctors and nurses to make decisions and control their own budgets to make sure patients receive the best services.

– A spokesman for Department of Health

NHS received '£1.8 billion in extra cash in eight years'

The Department of Health has pumped an extra £1.8 billion into 46 NHS bodies since 2006/7, a damning report into NHS finances found.

The National Audit Office found:

  • Of the £1.8 billion only £160 million has been repaid.
  • Among the struggling trusts to be bailed out in 2013/14, North Cumbria University Hospitals received the highest total of £42 million.
  • Next up was Peterborough and Stamford Hospitals with £40.7 million.
  • In third place was University Hospital of North Staffordshire with £37 million.
  • Forty-four health trusts moved from surplus in 2012/13 to deficit in 2013/14.
  • Overall, NHS bodies achieved a net surplus of £722 million in 2013/14 - a third of the £2.1 billion recorded in the previous 12 months.

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Over half a billion 'pumped into cash-strapped NHS'

The government has had to prop up cash-strapped NHS trusts and foundations with over half a billion pounds in emergency funds this year, a "deeply alarming" report from auditors said.

The gross deficit for NHS trusts has risen £447 million in one year. Credit: PA

An extra £511 million was spent on bailing out struggling NHS trusts in 2013-14 alone, according to the National Audit Office (NAO).

This was double the £263 million given to failing trusts the year before as funds had to be diverted to an extra 16 trusts which had not previously needed extra cash.

Some 25 NHS trusts had fallen into the red by the end of 2012/13, but this number has more than doubled over the last 12 months and peaked at 63, the NAO said.

The report said the gross deficit of health trusts rose by 150% from £297 million in 2012/13 to £743 million in 2013/14.

Margaret Hodge, chairwoman of the Public Accounts Committee, said the "deeply alarming report" showed the future sustainability of the NHS was at risk.

Read: NHS 'needs radical shake-up and extra cash'

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