Tynwald will be asked to approve an overspend of £10m for the DHSC to increase its budget for 2021/22 to £242m.
The motion will come to the island’s parliament in March.
A listing on the Register of Business says the overspend is ‘as a result of unusual costs and activity within Manx Care’.
The motion says the DHSC is expecting to be about £7m over budget at the year end. And that: ‘In order to regularise its position, the Department is seeking a Supplementary Vote (additional budget) of £10m from Tynwald, such that actual expenditure will be less than the Tynwald-approved budget at year-end.’
‘In order to regularise its position, the Department is seeking a Supplementary Vote (additional budget) of £10m from Tynwald, such that actual expenditure will be less than the Tynwald-approved budget at year-end.’
Included in the bid for extra cash is the cost of pay increase for the Health, Medical and Dental (HMD) and the Manx Pay Terms & Conditions (MPTC) staff. Pay negotiations are still ongoing for 2021/22 and a pay award of 3% has been offered to those groups to match the UK award. However, the budget allowed for a 1% pay award so this offer is £2.4m over and above the budget.
The DHSC says that many services and supplies within Manx Care have increased, which is something that is being faced the world over.
Equally drug costs have increased, the motion explains that ‘during 19/20 spend of £23m was within budget but during 20/21 increased significantly to £25.6m, which was £2.6m over budget’. In the current year, spending is expected to exceed budget by £4.5m by year-end.
The motion adds: ‘It is perhaps disappointing that Manx Care has been unable to manage within its allocated budget for the year, give the political commitment to the Sir Jonathan Michael report and its recommendations. However the reasons for the over-spend in the current year are largely due to unusual costs/activity including a pay award which is currently in negotiation. With the over-spending in Manx Care being funded by a transfer from the DHSC, the DHSC will not be able to achieve financial balance in 2021/22 without a Supplementary Vote.’
A History of This
In case you feel a sense of Déjà vu, this is this latest in a long time of bids for extra cash from DHSC. If we are fair and take 2020/21 out of equation because even the gov’s most ardent opponent would have to admit this was a unique year, the DHSC had gone back to Tynwald five years in a row for extra cash before the establishment of Manx Care.
Between 2015 and 2020, those overspends totalled more than £40m.