Stormont’s Health Funding – A Comedy of Errors
Mike Nesbitt predicts there will be difficult discussions with health unions ahead
Well, grab your popcorn because the show at Stormont just got even more interesting! The health minister, Mike Nesbitt, has pulled a rabbit out of his hat: an additional £350 million for the health department. But wait, there’s more! He’s also discovered he’s £100 million short of a balanced budget, making him the magic man who can’t quite make his bills disappear.
Nesbitt, looking incredibly sharp in his navy suit (is there a secret discount on suits at Stormont?), as he fielded questions, voiced his “incredibly reluctant” stance on possibly not matching those juicy pay deals offered to healthcare staff elsewhere in the UK. It’s like going to a buffet and finding someone else’s plate is piled high while you’re left with a single dry biscuit.
Caoimhe Archibald highlights the spending pressures facing departments.
Now, let’s dive into the juicy details. It seems the independent Pay Review Body has a few ideas of its own, recommending a whopping 5.5% pay increase for health staff in Northern Ireland for the coming year. But here’s the twist—unions are staging rallies (cue dramatic music) while Nesbitt is gearing up to have “difficult discussions.” I mean, when was the last time someone said, “Difficult discussions,” and everyone left feeling warm and fuzzy?
It’s like watching a soap opera, isn’t it? Just last week, Unison members raised their voices—after all, they, like many of us, are just trying to earn a decent wage. And who can blame them? For heaven’s sake, it is 2023, not a Dickens novel!
So How Much Does the Health Department Actually Need?
Nesbitt has stated that he’s “incredibly reluctant” to overspend. Ah yes, the age-old dilemma of wanting a new car but only being able to afford a bus pass! He’s hoping for some negotiation magic with health unions to sort this mess out. However, expecting smooth negotiations in budget talks is like expecting a cat to love water.
Adding to the drama, Deputy First Minister Emma Little Pengelly chimed in, claiming there’s a “collective acknowledgment” that budgets aren’t miraculously hefty enough for salary increases. Well, that’s comforting! Like a group of people standing around a pyre saying, “Not my fault!” It’s a bit like collectively agreeing to walk off a cliff while holding hands!
Monitoring Rounds and Other Magical Terms
Now, let’s briefly touch on this cryptic term, “monitoring rounds.” It’s not a mysterious spy agency, but a government system to review spending plans—a bit healthier than calling it “spending-scrutiny rounds,” don’t you think? These are generously held three times a year—like a quarterly update, only nobody’s happy when they walk out.
But wait, it gets better! There’s also talk of cuts to winter fuel payments for our beloved pensioners. Yes, the Chancellor has decided means testing will apply. Because nothing screams “festive spirit” quite like a good old means test during winter!
There are more spending pressures than a cat at a dog show!
Final Thoughts
So, as the drama unfolds at Stormont, we’re left eagerly waiting to see who pays the price for the pie-in-the-sky budget ambitions. Will Nesbitt pull another miracle? Will the unions rally even harder? Will pensioners get thrown a bone, or will they have to make do with just a cuddle in front of the fireplace? One thing is certain—stay tuned, folks! It’s going to be a bumpy ride!
PA Media
Stormont’s health minister has raised concerns about the feasibility of matching pay agreements for healthcare professionals instituted in other regions of the UK.
Mike Nesbitt articulated these worries following a budgetary reallocation exercise commonly referred to as a monitoring round.
Although his department received an injection of £350 million, he emphasized that this amount still leaves a deficit of £100 million for a balanced budget.
Nesbitt expressed his deep reluctance to overspend and anticipates challenging negotiations with health unions in the near future.
Union members from Unison staged a rally at Stormont last week, expressing their concerns over stagnant pay and hinting at the possibility of industrial action.
An independent Pay Review Body has recommended a 5.5% raise for health staff in Northern Ireland for the 2024-25 fiscal year. However, this pay increase has not yet been applied in Northern Ireland.
Nesbitt stated that he faces a crossroads: either overspend the budget or engage in negotiations with unions while clearly stating that he lacks sufficient funds to fulfill national pay settlements.
“I refuse to face a healthcare worker directly and tell them, after trust groups saved over £200 million this year, that I am not striving to maintain equitable pay for them,” he articulated.
How much money does the Department of Health need?
Nesbitt reiterated that he requires an additional £100 million to achieve budget balance and expressed his unwillingness to overspend.
As he prepares to launch talks with health unions about achieving pay parity, he hopes that some grounds for negotiation exist while also preparing for the possibility of tough discussions.
Deputy First Minister Emma Little Pengelly highlighted a “collective acknowledgment” that the current allocation does not grant ministers the liberty to prioritize salaries to the extent they would prefer.
PA Media
Earlier this year, finance minister Caoimhe Archibald alerted MLAs that departments were under substantial spending pressures totaling £767 million.
A spending pressure occurs when a department asserts the necessity of additional funding beyond the allocated budget.
Although the new allocations help to ease some pressures, First Minister Michelle O’Neill remarked that £180 million in pressures still remain unaddressed.
O’Neill remarked, “One budget was not going to be enough to reverse the toxic legacy of austerity.”
What is a monitoring round?
Monitoring rounds are essential for reviewing spending plans and priorities, serving as a tool for budget management.
This process allows changes in executive priorities to be reflected in additional allocations and offers flexibility to address emerging fiscal needs.
Monitoring rounds occur three times annually—in January, June, and October.
Winter fuel payment cuts
The Department for Communities has received £17 million, aimed at partially easing the impact of cuts to winter fuel payments for pensioners.
Chancellor Rachel Reeves revealed in July that payments could reach up to £300 but would be means-tested in England and Wales.
Stormont opted to adopt this policy to avoid an annual bill of £44 million required to maintain universal payments.
Communities Minister Gordon Lyons expressed regret, stating, “Regrettably there is no additional resource available in the budget to allow us to diverge from the UK government decision.”
The particulars of how the £17 million will be allocated to pensioners remain uncertain.
An additional £24 million will also be designated to the Department for Communities specifically for the construction of social housing.
Earlier this year, Stormont faced backlash after cutting the social housing budget, limiting funds to construct only 400 new social houses against a goal of 2,000.
Deputy First Minister has stated that this new funding will facilitate the construction of an extra 1,400 homes.
More money for Justice Department
The finance minister plans to draft a budget for the upcoming 2025-26 financial year ahead of Christmas, which will engage the public through consultation.
This is part of an expansion as the Westminster budget will provide Stormont with an additional £1.5 billion to allocate next year.
Bd5f6-0 fYAfXe”>The cuts, which have sparked concern and discontent among pensioners, are part of broader budgetary constraints affecting various departments.
Minister of Communities, Deirdre Hargey, has acknowledged the financial difficulties faced by many due to rising energy costs and inflation, emphasizing the need for continued support for vulnerable groups.
Despite the additional funding, the cuts to winter fuel payments have raised questions about the long-term support for the elderly and those on low incomes during the winter months.
