Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what steps he plans to take to tackle financial deficits accumulated by CCGs.

While we have had no specific discussions, local health systems, working with NHS England and NHS Improvement through their operational planning process, discuss the levels of deficits directly with National Health Service providers. We have set out strategic objectives for the NHS in ‘The Government's 2021-22 mandate to NHS England and NHS Improvement’ which includes clear expectations that financial balance must once again be delivered, with measures including reducing the number of organisations in deficit.

We have provided approximately £18 billion in 2020-21 and £8 billion in 2021-22 to NHS providers and commissioners to fund the cost consequences of the COVID-19 response and an additional £1.5 billion in 2021-22 to tackle the elective backlog and mental health recovery programmes. We have implemented a temporary financial regime to ensure that NHS providers’ and commissioners’ spending on their individual COVID-19 response is fully reimbursed. We continue to work with NHS England and NHS Improvement and HM Treasury to secure further approvals and funding support, with announcements expected later in the year.

The NHS is developing their approach to managing deficits in both clinical commissioning groups and NHS providers by moving towards system-based funding allocations and planning. Local leaders will work together to direct use of those system allocations where needed most, with the expectation of financial balance without recourse to additional Government support.