Supplementary evidence submitted by the
Council of Deans and Heads of UK University Faculties for Nursing
and Health Professions (WP 73A)
Use of MPET budgets (including NMET element
of MPET) to reduce deficits in the overall health economy of the
SHA
INTRODUCTION
In response to the request from the Health Committee,
this note highlights evidence from recent board papers from pre-July
SHAs demonstrating that funding from MPET budgets has been used
to reduce deficits in the overall SHA health economy. Extracts
are provided from five SHAs.
In each case they demonstrate that "underspends"
from MPET funding have been used to contribute to reductions in
overall SHA health economy deficits. They also indicate that these
SHAs had also required the WDDs to underspend and in some cases
had imposed specific financial targets for this.
Thus in example 1 (Avon, Gloucestershire and
Wiltshire SHA):
"The WDC has taken significant measures
to achieve £7.8 million, which has contributed to the overall
AGW wide financial position."
and
"...the SHA set the WDC a savings total
of £10 million to contribute to achieving a balanced LDP
and to avoid cost-shifting to the service. This meant further
reductions in education commissions had to be made."
In example 4 (Thames Valley SHA):
"At the end on Month 11 there is a £5.6
million underspend and this is expected to remain the same for
Month 12...
The SHA has still not received confirmation of
allocations for 2006-07 but continues to work within the proposed
budget. There are still huge financial pressures across the health
economy and the committee has been asked to find a further £500k
in support from the Workforce budget."
The Council of Deans also believes that savings
have been targeted towards the NMET element of the MPET budget
(savings in which impact less directly on NHS organisations than
for savings in MADEL and SIFT). This is more difficult to evidence
directly.
However, in example 1 (AGW) the forecast variance
in the PG medical and dental budget is stated as 2.04%, whereas
the variance in the "other healthcare professions budget"
is 6.28%.
In example 4 "The bulk of the underspend
is from the NMET budget."
and
"EMS asked for the money to be delivered
from genuine savings and not by shifting costs to Trusts".
Extracts from SHA board papers published on the
web
1. Avon, Gloucestershire and Wiltshire
Board meeting 4 May 2006, financial performance
2005 to 2006—as at 28 February 2006
"The WDC is continuing to stop all activity
that has either not been firmly committed or has not been earmarked
for allocation to NHS organisations in AGW. The forecast underspending
on the budget amounts to £7.3 million (5.3%). The WDC has
taken significant measures to achieve £7.8 million, which
has contributed to the overall AGW wide financial position."
| Forecast variance for PG medical and dental budget
| 2.04% |
| Forecast variance for Other Healthcare Professions
| 6.28% |
| |
Board meeting 27 June 2006
Pre-registration education and training contracts
Education commissions
"During the period of negotiations in April, the SHA
set the WDC a savings total of £10 million to contribute
to achieving a balanced LDP (Local Delivery Plan) and to avoid
cost-shifting to the service. This meant further reductions in
education commissions had to be made".
2. Hampshire and the Isle of Wight SHA
Board meeting 9 May 2006
Financial monitoring report 2005-06
Strategic Health Authority Position
"Workforce Development Directorate—has by far the
largest annual budget of £136 million. Breakeven has been
forecast, which is a net position after making an increased contribution
of £20 million to the Central Risk Reserve."
Board meeting 13 June 2006
Workforce Development Directorate Operating Plan 2006-07
"The Draft Operating Plan is based on the assumption
that further new brokerage of £10 million to the SHA is required."
The draft Operating plan is based upon anticipated allocations
as previously notified. The SHA request for £10 million brokerage
has been covered by the £8 million already identified by
the WDD.
The remaining £2 million will be found by not releasing
any developments (£1.5 million) and increasing the expected
slippage on programmes.
3. North West London SHA
Board meeting 25 April 2006
Finance report
SHA Administration and Education and Training Position
"As the main education and training allocation budget
was not notified until mid October 2005, commitments were kept
to a minimum. As a consequence an element of natural slippage
has materialised.
All budgets have been further scrutinised to assess the contribution
that can be made to assist the sector position. An estimated underspend
on the education and training budget is now forecast. Budgets
are under constant review to identify the potential for an increased
surplus to assist the sector position."
4. Thames Valley SHA
Paper for Board Meeting on 10 May 2006
Draft minutes of the workforce Committee held on 13 April
2006
"At the end on Month 11 there is a £5.6 million
underspend and this is expected to remain the same for Month 12.
This is spread across all workstreams with pressures on the
MADEL budget re flexible careers. The bulk of the underspend is
from the NMET budget.
The SHA has still not received confirmation of allocations
for 2006-07 but continues to work within the proposed budget.
There are still huge financial pressures across the health economy
and the committee has been asked to find a further £500k
in support form the Workforce budget."
"EMS asked for the money to be delivered from genuine
savings and not by shifting costs to Trusts."
5. North and East Yorkshire and Northern Lincolnshire SHA
Board meeting 28 June 2006
Workforce Report
The WDC has reported an underspend of £1,824 against
current budgets. These budgets had already been reduced by brokerage
transferred to the SHA of £2,098k. Furthermore £3,630k
of brokerage relating to 2004-05 has not been repaid in 2005-06,
by agreement with the SHA. In totality therefore the overall surplus
generated by the WDC in contribution to the overall SHA financial
position is as follows:
| Brokerage not repaid from 2004-05: | £3,630k
|
| Brokerage generated in 2005-06 | £2,098k
|
| Further budget underspends | £1,824k
|
| Total | £7,552k |
Council of Deans and Heads of UK University Faculties for Nursing and Health Professions
21 July 2006
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