Health Minister reveals department needs extra £24 million

Monday 10 June 2024

Jersey's Health Department needs an extra £24 million this year and next year – instead of the previously cited £18 million – amid a global rise in the cost of providing care, the Health Minister has revealed.

Deputy Tom Binet also sought to reassure a panel of politicians that the department had an "obligation" to explain its financial position and that further details would be provided "in the not so distant future".

He broke the news during a recent hearing of the Health and Social Security Scrutiny Panel after its Vice-Chair, Deputy Jonathan Renouf, asked about the £18 million deficit in Health's budget.

"I'm here to tell the truth"

Deputy Binet replied: "I'm obliged to be entirely honest in these situations and it's more than that."

He explained: "I'm here to tell the truth – it is 24 [million]."

Pictured: Health Minister Tom Binet (centre) recently gave an update on the Health Department's financial position to a panel of politicians.

Following questions from Deputy Renouf, Deputy Binet clarified that the figure referred to ongoing yearly additional costs for 2024 and 2025.

Deputy Renouf said that Health "always seems to be needing more money" and asked whether the department's financial situation was the result of increased demand for services or historic underfunding.

"Significant inflationary costs"

Chief Officer of Health, Chris Bown, said that healthcare costs were rising globally.

Giving an example, he continued: "One provider that deals with cardiology tertiary work in the UK, has looked for an increase in what we pay them by an additional £1 million pounds.

"So what we are seeing is significant inflationary costs that are over and above the standard 2% or 3% that we would get as a department – or other departments get."

He also cited an increase in the cost of medication and specialist medication.

Pictured: Chief Officer of Health Chris Bown said that healthcare costs were rising globally.

Mr Bown added: "You are seeing an increase in demand, but not dramatic – so it's not a direct correlation.

"The big issues have been cost and the rising costs of healthcare, and that's the same all over the world."

An "obligation" to explain

Deputy Binet said: "What I feel we are obliged to do on this side is, if we are saying to Government 'actually that's £24 million [extra] for this year and 24 million [extra] for the next' the obligation is on us to explain that in simple terms, as to why that is.

"That's what we are committing to do in the not so distant future."

Pictured: Health Minister Tom Binet said that there was an "obligation" for his department to explain why the costs were needed.

Earlier in the hearing, Ruth Johnson, Director of Health Policy, said: "As the years progress, as a jurisdiction – as with all other jurisdictions – we are going to have to invest increasingly more money in our health and care services, if we are to continue to deliver the health and care services that we have today."

It also emerged recently that an overspend on agency workers totalling nearly £5 million is affecting the Health Department's ability to meet its staff costs budget so far this year.

In tomorrow's sitting of the States Assembly, Deputy Max Andrews is due to ask how much has been spent on locums since the start of 2024.