Responding to the Chancellor's Spring Statement, Nuffield
Trust Senior Policy Analyst Sally Gainsbury said:
“Today's announcements have added to the already substantial
pressures being felt in the health service. They mean that the
day-to-day health budget for next year will grow by less than 2%
in real terms, after adjusting for the impact of national
insurance increases in the NHS. This compares to a long-term
average of nearer 3%.
“The government has highlighted opportunities for savings made to
central administration costs to be reinvested into the front
line, such as through dismantling NHS England. It's absolutely
right to drive down duplication and waste when the health service
is under such pressure. But these savings are unlikely to deliver
anything like the boost to funding needed to keep up with
population demand.
“Over the last decade and a half, successive governments have
repeated the same mistake of underestimating the level of funding
growth required to keep up with growing patient needs and
expectations, resulting in chaotic last minute top ups to the
budget. This has already happened for the budget for the current
financial year, which had to be supplemented with an extra £800m
for the NHS just four months after the Chancellor's autumn
statement.
“Adult social care has once again been hung out to dry. Today's
statement confirms the absence of funding to cover extra costs,
which we estimate will amount to £2.8bn from Employer National
Insurance Contributions and minimum wage increases for care
providers. This will likely lead to many providers going bust or
reducing services, meaning people will suffer from less choice or
poorer quality care.
“The government has promised long-term reform of adult social
care with the upcoming Casey Commission. The newly announced
Transformation Fund offers billions of extra funding for
reforming public services, but it's unclear whether any of this
will be used for desperately needed changes to adult social care.
Today's worrying financial outlook risks jeopardising the sector
before Baroness Casey's feet are even under the table.”
