Health cutbacks to 'change lives'

Wolverhampton CCG – the body that commissions the city's health services – made the gloomy forecast as it outlined budget savings over the coming years.

That includes a 10 per cent reduction in its running costs in 2015/16.

With the city council cutting £123 million from its budget and the £20 billion NHS savings also having an impact on the city, bosses have warned that further pressure will be placed on the health system. And a report has threatened that Wolverhampton people will endure 'increased hardship' as a result of budget cuts.

Claire Skidmore, chief finance and operating officer, outlined the stark reality facing the city in the Wolverhampton CCG's latest budget report.

She said: "The greatest risk to the CCG is that spending cannot be contained within the budgets set and that contingencies are insufficient to cover any shortfall in funding.

"There is also a risk that the total portfolio of contract offers from providers will exceed the budget set aside to spend in 2014/15.

"This is being actively managed by the CCG contract team as negotiations progress."

A new £20m Better Care Fund, a single pooled budget aimed at supporting health and social care services, could also be damaging to the CCG, the report said. It added: "The Better Care Fund model will bring together health and social care budgets and deliver joint services across the city.

"There are a number of risks relating to this work which are recorded in the operating plan.

"However in the context of the finance plan there is a significant risk that as the fund develops it will draw funds out of the CCG that it does not have freely available to allocate, hence increasing the cost burden to the organisation."

With national funding to CCGs also being cut, the report said Wolverhampton CCG was planning for smaller services and budgets in future years.

It added: "Further, and of particular concern in Wolverhampton, are the budget cuts proposed for local authorities. Along with the imminent introduction of the new Care Bill, this will no doubt fundamentally change the lives of many people in Wolverhampton and will have an impact on healthcare services across the city."