From the start of this month, £1.5 billion of debt of NHS debt across 16 NHS Trusts the North East and Yorkshire will be scrapped as part of the £13.4 billion debt write off announced by the Health Secretary last week.
This is part of a package of major reforms to the NHS financial system, designed in a collaboration between the Department of Health and NHS England, which will begin from the start of the new financial year.
- Health secretary announces £1.5 billion of debt will be written off in the North East and Yorkshire, as part of a major financial reset for NHS providers
- 16 NHS Trusts in the North East and Yorkshire to be rid of historic debt, freeing them up to invest in maintaining vital services and longer-term infrastructure improvements
- Harrogate and District Foundation Trust has had £4,894,000 written off, one of the smallest amount of debt of all trusts
The changes will provide much needed financial support during this unprecedented viral pandemic, as well as laying secure foundations for the longer-term commitments set out last year to support the NHS to become more financially sustainable.
Health Secretary Matt Hancock said:
As we tackle this crisis, nobody in our health service should be distracted by their hospital’s past finances.
Today I’m pleased to confirm the value of this package for the North East and Yorkshire. This £1.5 billion debt write off will wipe the slate clean and allow NHS hospitals to plan for the future and invest in vital services.
While many NHS trusts manage strong finances, under the existing rules, some took out loans to plug financial gaps in their day-to-day (revenue) or capital (infrastructure) budgets.
107 Trusts have an average of £100 million revenue debt each, with the two trusts with the highest debts reaching a combined total of over £1 billion.
For hospitals in the North East and Yorkshire, this means writing off around £1.4 billion revenue debt and £132 million capital debt.
NHS chief executive, Sir Simon Stevens, said:
We’ve advocated for and support this pragmatic move which will put NHS hospitals, mental health and community services in a stronger position – not just to respond to the immediate challenges of the global coronavirus pandemic, but also in the years ahead to deliver widespread improvements set out in our NHS Long Term Plan.
Under the new rules set out in a letter to all NHS Trusts, should hospitals need extra cash this will be given with equity, rather than needing to borrow from the government and repay a loan.
The letters also include details on every local area’s capital budget for 2020/21, providing certainty to the NHS for the new financial year and enabling investment in vital longer-term infrastructure upgrades as soon as possible.
These budgets come on top of the capital facility the Government launched in February to ensure the NHS has access to whatever extra capital investment it needs, without charges, to respond to the COVID-19 outbreak.
The debt write-off package was launched in combination with a simpler internal payment system to help NHS trusts in dealing with the Covid-19 response, agreed with NHS England.
This significant change will mean hospitals will get all the necessary funding to carry out their emergency response, despite many hospitals cancelling or limiting their usual services such as elective surgery or walk-in clinics due to the virus.
Debt write-off – Breakdown by Region
East of England
| Name | Total (£’000) | Revenue Debt (£’000) | Capital Debt (£’000) |
| Cambridge University Hospitals NHS Foundation Trust | £340,197 | £296,497 | £43,700 |
| North West Anglia NHS Foundation Trust | £268,201 | £212,063 | £56,138 |
| Mid Essex Hospital Services NHS Trust | £195,642 | £195,642 | £0 |
| Norfolk and Norwich University Hospitals NHS Foundation Trust | £195,131 | £168,002 | £27,129 |
| East Suffolk and North Essex NHS Foundation Trust | £192,681 | £189,400 | £3,281 |
| Basildon and Thurrock University Hospitals NHS Foundation Trust | £151,426 | £147,132 | £4,294 |
| The Princess Alexandra Hospital NHS Trust | £150,467 | £146,187 | £4,280 |
| The Queen Elizabeth Hospital Kings Lynn NHS Foundation Trust | £134,161 | £120,043 | £14,118 |
| Southend University Hospital NHS Foundation Trust | £59,138 | £59,138 | £0 |
| West Suffolk NHS Foundation Trust | £46,495 | £31,367 | £15,128 |
| James Paget University Hospitals NHS Foundation Trust | £7,271 | £7,271 | £0 |
| Norfolk & Suffolk NHS Foundation Trust | £4,849 | £0 | £4,849 |
| Total | £1,745,659 | £1,572,742 | £172,917 |
London
| Name | Total (£’000) | Revenue Debt (£’000) | Capital Debt (£’000) |
| King’s College Hospital NHS Foundation Trust | £735,312 | £640,668 | £94,644 |
| Barts Health NHS Trust | £592,839 | £534,313 | £58,526 |
| London North West Healthcare NHS Trust | £339,718 | £324,853 | £14,865 |
| St George’s University Hospitals NHS Foundation Trust | £315,013 | £263,435 | £51,578 |
| Barking, Havering and Redbridge University Hospitals NHS Trust | £245,378 | £228,116 | £17,262 |
| Lewisham and Greenwich NHS Trust | £193,138 | £189,982 | £3,156 |
| Royal Free London NHS Foundation Trust | £145,656 | £142,356 | £3,300 |
| Epsom and St Helier University Hospitals NHS Trust | £120,589 | £102,380 | £18,209 |
| Royal National Orthopaedic Hospital NHS Trust | £117,924 | £67,087 | £50,837 |
| Croydon Health Services NHS Trust | £103,308 | £86,617 | £16,691 |
| The Hillingdon Hospitals NHS Foundation Trust | £94,951 | £80,931 | £14,020 |
| North Middlesex University Hospital NHS Trust | £57,090 | £55,590 | £1,500 |
| Kingston Hospital NHS Foundation Trust | £37,367 | £7,466 | £29,901 |
| Whittington Health NHS Trust | £27,226 | £27,226 | £0 |
| Imperial College Healthcare NHS Trust | £15,805 | £15,805 | £0 |
| Total | £3,141,314 | £2,766,825 | £374,489 |
Midlands
| Name | Total (£’000) | Revenue Debt (£’000) | Capital Debt (£’000) |
| United Lincolnshire Hospitals NHS Trust | £377,859 | £342,338 | £35,521 |
| University Hospitals of Leicester NHS Trust | £349,586 | £296,575 | £53,011 |
| University Hospitals of Derby and Burton NHS Foundation Trust | £325,160 | £273,594 | £51,566 |
| Worcestershire Acute Hospitals NHS Trust | £321,580 | £298,423 | £23,157 |
| West Hertfordshire Hospitals NHS Trust | £236,737 | £207,207 | £29,530 |
| Sherwood Forest Hospitals NHS Foundation Trust | £233,958 | £219,347 | £14,611 |
| University Hospitals of North Midlands NHS Trust | £196,093 | £194,593 | £1,500 |
| Wye Valley NHS Trust | £192,195 | £164,024 | £28,171 |
| Kettering General Hospital NHS Foundation Trust | £167,922 | £137,017 | £30,905 |
| East and North Hertfordshire NHS Trust | £146,886 | £140,745 | £6,141 |
| Milton Keynes University Hospital NHS Foundation Trust | £130,852 | £115,578 | £15,274 |
| Walsall Healthcare NHS Trust | £129,967 | £119,357 | £10,610 |
| University Hospitals Coventry and Warwickshire NHS Trust | £112,389 | £92,335 | £20,054 |
| Northampton General Hospital NHS Trust | £107,969 | £97,784 | £10,185 |
| George Eliot Hospital NHS Trust | £91,109 | £77,093 | £14,016 |
| Nottingham University Hospitals NHS Trust | £90,740 | £90,019 | £721 |
| Shrewsbury & Telford Hospitals NHS Trust | £82,554 | £80,932 | £1,622 |
| Bedford Hospitals NHS Trust | £70,910 | £68,510 | £2,400 |
| Midlands Partnership NHS Foundation Trust | £40,100 | £40,100 | £0 |
| University Hospitals Birmingham NHS Foundation Trust | £34,634 | £31,792 | £2,842 |
| The Royal Orthopaedic Hospital NHS Foundation Trust | £19,718 | £19,718 | £0 |
| East Midlands Ambulance Service NHS Trust | £14,013 | £11,184 | £2,829 |
| Black Country Partnership NHS Foundation Trust | £700 | £700 | £0 |
| Total | £3,473,631 | £3,118,965 | £354,666 |
North East and Yorkshire
| Name | Total (£’000) | Revenue Debt (£’000) | Capital Debt (£’000) |
| North Cumbria Integrated Care NHS Foundation Trust | £299,319 | £290,638 | £8,681 |
| University Hospitals of Morecambe Bay NHS Foundation Trust | £290,727 | £261,952 | £28,775 |
| Northern Lincolnshire and Goole NHS Foundation Trust | £210,597 | £199,895 | £10,702 |
| South Tees Hospital NHS Foundation Trust | £144,622 | £118,194 | £26,428 |
| Calderdale and Huddersfield NHS Foundation Trust | £140,718 | £138,716 | £2,002 |
| Mid Yorkshire Hospitals NHS Trust | £114,561 | £95,766 | £18,795 |
| Doncaster and Bassetlaw Hospitals NHS Foundation Trust | £70,972 | £70,972 | £0 |
| Barnsley Hospital NHS Foundation Trust | £67,376 | £65,571 | £1,805 |
| Leeds Teaching Hospitals NHS Trust | £62,016 | £37,329 | £24,687 |
| The Rotherham NHS Foundation Trust | £57,459 | £57,459 | £0 |
| Hull University Teaching Hospitals NHS Trust | £35,295 | £24,576 | £10,719 |
| York Teaching Hospital NHS Foundation Trust | £32,140 | £32,040 | £100 |
| County Durham and Darlington NHS Foundation Trust | £30,108 | £30,108 | £0 |
| South Tyneside and Sunderland NHS Foundation Trust | £22,129 | £22,129 | £0 |
| Gateshead Health NHS Foundation Trust | £12,235 | £12,235 | £0 |
| Harrogate and District NHS Foundation Trust | £4,894 | £4,894 | £0 |
| Total | £1,595,168 | £1,462,474 | £132,694 |
North West
| Name | Total (£’000) | Revenue Debt (£’000) | Capital Debt (£’000) |
| Liverpool University Hospitals NHS Foundation Trust | £218,489 | £196,493 | £21,996 |
| Lancashire Teaching Hospitals NHS Foundation Trust | £215,507 | £188,707 | £26,800 |
| Pennine Acute Hospitals NHS Trust | £160,561 | £145,810 | £14,751 |
| Southport and Ormskirk Hospital NHS Trust | £130,542 | £129,607 | £935 |
| Tameside and Glossop Integrated Care NHS Foundation Trust | £106,631 | £106,631 | £0 |
| East Cheshire NHS Trust | £85,757 | £85,757 | £0 |
| Wirral University Teaching Hospital NHS Foundation Trust | £83,884 | £83,884 | £0 |
| Blackpool Teaching Hospitals NHS Foundation Trust | £67,827 | £61,827 | £6,000 |
| Warrington and Halton Hospitals NHS Foundation Trust | £57,798 | £56,624 | £1,174 |
| Stockport NHS Foundation Trust | £46,055 | £41,490 | £4,565 |
| Bridgewater Community Healthcare NHS Foundation Trust | £26,040 | £26,040 | £0 |
| Countess of Chester Hospital NHS Foundation Trust | £24,468 | £16,917 | £7,551 |
| St Helens and Knowsley Teaching Hospitals NHS Trust | £18,707 | £18,707 | £0 |
| Liverpool Women’s NHS Foundation Trust | £14,572 | £0 | £14,572 |
| Mid Cheshire Hospitals NHS Foundation Trust | £13,188 | £4,997 | £8,191 |
| Alder Hey Children’s NHS Foundation Trust | £8,000 | £8,000 | £0 |
| East Lancashire Hospitals NHS Trust | £7,748 | £7,748 | £0 |
| Total | £1,285,774 | £1,179,239 | £106,535 |
South East
| Name | Total (£’000) | Revenue Debt (£’000) | Capital Debt (£’000) |
| Brighton and Sussex University Hospitals NHS Trust | £293,485 | £254,833 | £38,652 |
| Medway NHS Foundation Trust | £290,997 | £268,775 | £22,222 |
| East Sussex Hospitals NHS Trust | £232,653 | £222,998 | £9,655 |
| East Kent Hospitals University NHS Foundation Trust | £133,819 | £124,919 | £8,900 |
| Portsmouth Hospitals NHS Trust | £125,165 | £122,365 | £2,800 |
| Buckinghamshire Healthcare NHS Trust | £107,696 | £100,954 | £6,742 |
| Isle of Wight NHS Trust | £90,925 | £90,925 | £0 |
| Dartford and Gravesham NHS Trust | £49,283 | £44,391 | £4,892 |
| Maidstone and Tunbridge Wells NHS Trust | £26,122 | £26,122 | £0 |
| The Solent NHS Trust | £9,109 | £9,109 | £0 |
| Hampshire Hospitals NHS Foundation Trust | £8,000 | £8,000 | £0 |
| Queen Victoria Hospital NHS Foundation Trust | £6,391 | £6,391 | £0 |
| Southern Health NHS Foundation Trust | £5,000 | £5,000 | £0 |
| Kent & Medway NHS & Social Care Partnership NHS Trust | £2,300 | £2,300 | £0 |
| Total | £1,380,945 | £1,287,082 | £93,863 |
South West
| Name | Total (£’000) | Revenue Debt (£’000) | Capital Debt (£’000) |
| North Bristol NHS Trust | £172,171 | £172,171 | £0 |
| University Hospitals Plymouth NHS Trust | £141,984 | £141,984 | £0 |
| Gloucestershire Hospitals NHS Foundation Trust | £127,860 | £106,229 | £21,631 |
| Yeovil District Hospital NHS Foundation Trust | £89,766 | £84,071 | £5,695 |
| Great Western Hospitals NHS Foundation Trust | £61,895 | £60,473 | £1,422 |
| Weston Area Health NHS Trust | £57,582 | £57,582 | £0 |
| Royal Cornwall Hospitals NHS Trust | £42,594 | £36,818 | £5,776 |
| Taunton and Somerset NHS Foundation Trust | £24,917 | £19,444 | £5,473 |
| Poole Hospital NHS Foundation Trust | £24,579 | £21,524 | £3,055 |
| Avon and Wiltshire Mental Health Partnership NHS Trust | £23,398 | £22,048 | £1,350 |
| Salisbury NHS Foundation Trust | £21,082 | £21,082 | £0 |
| Northern Devon Healthcare NHS Trust | £20,003 | £20,003 | £0 |
| Torbay and South Devon NHS Foundation Trust | £17,731 | £14,731 | £3,000 |
| Total | £825,562 | £778,160 | £47,402 |
