NHS North East London has spent £91.5m more than planned so far this year amid struggles with expensive treatments and the high costs of critical care, reports Sebastian Mann, Local Democracy Reporter
NHS trusts across north-east London are falling short of the cuts they need to make, according to a new report.
Healthcare providers across eight boroughs were a combined £80m in the red in February, and were behind on mandated cuts by around £32.3m.
The report was published by NHS North East London (NEL), the integrated care board (ICB) that oversees the finances of the area’s five NHS trusts. They cover Barking and Dagenham, City of London, Hackney, Havering, Newham, Redbridge, Tower Hamlets, and Waltham Forest.
Hospitals are struggling with expensive treatments and high costs of critical care, according to an NHS report published last week.
Meanwhile, mental health services face challenges in paying for external beds and the intensifying needs of patients.
According to the report, NEL has spent £91.5 million more than planned so far this year. The target was to only be £5.4m in debt, but it is £86.1m worse off than expected.
Trusts are required to break even by the year’s end and produce cost improvement plans showing their intended methods.
At a minimum, they must include a 40% reduction in the amount being spent on agency workers and a 15% reduction in bank staff, who work temporary shifts.
All five trusts were anticipating breaking even, except for Homerton Healthcare NHS Foundation Trust.
In order to do so, the whole system needs to find £367.7m in ‘savings’. However, £79m of that still has not been identified – meaning there’s a major risk it could fall through.
They will also need to produce cost improvement plans, outlining what they intend to chop.
Health Secretary Wes Streeting announced in March that he would merge NHS England with the Department of Health and Social Care (DHSC), and ICBs would be cut in half.
He previously told the Local Democracy Reporting Service: “Some of the changes are about making the system more efficient, more productive and spending taxpayers’ money more wisely.”
In the report, the NHS said NEL was facing an “extremely challenging time”.
An official wrote: “The ICB will need to look very different by early 2026 – and this will go substantially beyond just a reduction in size. It is a very difficult period for our staff, and many will be deeply worried about what it means for them personally.
“When we have more clarity about the future and have worked through the changes in more detail, we will be clearer about the impact on local people.”
Streeting previously said these “difficult and unpopular decisions” would allow the government to put “record levels of investment” into the NHS, with £26billion allocated for this year.
“We have seen a culture that’s built up under the Conservatives of deficits and bailouts year in, year out”, he added. “That culture has to stop, and that’s what we’re getting a grip on.”
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