Inflation and demand growth looks set to wipe out most of Jeremy Hunt’s £3.3billion extra funding for the National Health Service, a report has claimed. It has been estimated that the NHS will receive just an extra £800million over the next two years.
Analysis conducted by Nuffield Trust indicated that soaring prices and growing demand will use up three-quarters of next year’s increase, according to Sky News.
Energy price increases for NHS buildings are expected to add £121million on running costs in the year to March.
Inflation is estimated to cost the NHS £3.2billion over the next two years.
Meanwhile, a further £852million next year and £1.7billion the year after looks set to be spent on a growing and ageing population.
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Nuffield Trust’s chief economist John Appleby said that the final amount “could be higher or lower”.
He also claimed that this depended on whether trusts overspend and whether certain key costs, like nurses’ pay, increase faster than expected.
NHS Providers chief executive Matthew Taylor also told Sky News that the new money promised by Mr Hunt would allow the NHS to “just about keep the show on the road”.
He added: “It will enable us to continue to manage a very difficult situation, and hopefully make further progress in areas like waiting lists.
“Taxpayers will take a kicking over the coming years to pay for a raft of spending increases, with most tough decisions seemingly kicked into the long grass.
“The Government should have set out how they will get costs under control, not compounded the misery of sky-high inflation with tax hikes on working families.”