News / CCG reserve to offset deficits
He added that the creation of the 1% reserve has placed significant pressure on commissioners. This was reflected in the increase in the level of savings required from an average of 2.2% in 2015/16 to 3% in the current financial year.
At month nine CCGs reported a year-to-date overspend of £437m, with a year-end forecast of a £370m overspend. However, this is offset by underspends in direct commissioning and NHS England running and programme costs – both in the year-to-date and forecast outturn figures.
An overspend of £65m is also forecast for technical and ringfenced adjustments at year-end. This is due to the release of provisions in CCGs (£45m) and lower than expected depreciation charges (£20m).
The commissioning sector reported an overall overspend of £61m at Q3, but the overall forecast outturn is a £5m underspend.
While 98 CCGs are reporting year-to-date overspends – 60 of which are greater than 1% of allocation – 71 predicted year-end overspends. The figures show a deterioration of CCG financial positions – 27 CCGs are forecasting unplanned year-end deficits and, of the 39 with planned cumulative deficits, 23 are now forecasting a position worse than their annual plan.
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