News / Budget adds to pay costs

The announcement of the higher contributions was made in ​Wednesday's Budget and an analysis placed in the House of Commons Library suggest they will add £655m to the NHS pay bill in 2019/20.

The Budget focused on the next generation, including reducing child obesity and supporting some NHS children’s services. Chancellor George Osborne announced the introduction of a sugar levy, as well as funding for school sport and after school clubs.

He added that funds generated by the LIBOR inter-bank lending fines will be used to support children’s health services in Manchester, Sheffield, Birmingham and Southampton.

Central Manchester University Hospitals NHS Foundation Trust will receive £1.1m, while £700,000 has been allocated to Sheffield Children’s Hospital Charity for the provision of a helipad and a 3T MRI scanner, respectively. University Hospital Southampton NHS Foundation Trust will receive £2m to build a paediatric emergency and trauma department. Birmingham Children’s Hospital Charity will be allocated £700,000 to support appeals to transform the hospital’s eye department and create a centre for children with rare and undiagnosed conditions.

NHS Providers chief executive Chris Hopson welcomed the sugar levy, but expressed concern over the increase in pension contributions.

‘These extra pension costs will increase the NHS liability and, unless additional funding is found, they will represent another squeeze on NHS finances during the latter years of the parliament,’ he said. ‘The NHS has been charged with achieving £22 billion in efficiency savings by the end of this parliament but today’s Budget has added to that already ambitious target.’