NHS England price hike is squeezing Powys health

By Elgan Hearn, Local Democracy Reporter

A price hike implemented by NHS England is burning a hole in Powys Teaching Health Board’s (PTHB) financial bottom line.

At a board meeting on Wednesday, members were told that after five months of this financial year the budget is already performing just under £4 million worse than expected.

At the end of August, PTHB was reporting a £15.731 million overspend against its 2025/2026 budget deficit, which is forecast to be £28.312 million.

This is £3.933 million more than the £11.798 million deficit the health board had expected by this stage of the year – this is calculated on the £28.3 million being divided by 12 and this sum then multiplied by five.

PTHB Finance Director, Pete Hopgood, explained that the problems were found in the costs of commissioning services for patients, which has contributed £3.7 million to the overall overspend of £3.933 million.

Mr Hopgood said: “The key pressure areas remain consistent and number one is our commissioned activity.

“An increased price is being applied in NHS England in relation to unplanned care.”

Unplanned care is when people are treated in hospital for an unexpected injury or illness.

Mr Hopgood told the board that it had been “previously assumed” that this increase in costs would be covered by the Government.

Mr Hopgood said: “However, we have received confirmation that is not the position.”

He added that other parts of PTHB were reporting underspend positions which was “helping” the overall financial position.

Mr Hopgood said: “The message is we’ll continue to focus on these areas of cost pressure to deliver best efficiency and value for money while maintaining the best care for our population.

“It’s important that all members of the board and budget holders are tasked with reducing their run rates (spending) wherever possible and where there are opportunities.’

Board member, Dr Rhobert Lewis said: “It has been assumed that (Welsh) Government funding would be provided to cover the extra cost of NHS England and this turned out not to be the case.

“Is this likely to be the case next year?”

He also asked whether health boards in Wales, through the Joint Commissioning Committee (JCC), were putting together an argument to tackle the tariff uplift in England.

Mr Hopgood could not answer whether another increase could be expected next year.

PTHB Chief Executive, Hayley Thomas, came in to answer the second question and said that meetings had been held with other health boards to discuss how the “adverse impact” of the price increase could be recovered.

Ms Thomas explained that the increased costs impacts PTHB and Betsi Cadwaladr University Health Board which covers North Wales “more” than others in Wales.

Ms Thomas said: “The JCC team are currently scoping options on what additional actions can be taken, as we are at an organisational level, to make up the gap against our current position.”

These options she said would include looking at “planned investment” and reviewing “referral management arrangements”.

The board went on to approve the report.