Government gives the Department of Health bailout

Tuesday 19th February 2019 19:36 EST
 

The Government's Treasury department has given the Department of Health and Social Care (DHSC) a £600million bailout to cover 'unforeseen' costs. Spending estimates published by the Treasury describe the money as 'reserve funding to cover one-off pressures'. Analysts believe the DHSC was in danger of breaching its budget of almost £125bn, which could lead to a parliamentary vote on whether extra cash should be given. The rising cost of generic drugs and preparations for Brexit are thought to have stretched the DHSC – which 'acts as guardians of the health and care framework' – more than normal.  The reserve fund is set aside for unforeseen costs that cannot be covered by existing budgets. Departments must formally request tjhe reserve fund to access it. It was given a £250million bailout by the Treasury in 2014-15. Although the DHSC overspent the following year, it avoided going to Parliament due to an 'administrative error'.


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