Answers needed on health overspend, says deputy

Deputy Inna Gardiner said answers were needed on why there was a consistent overspend in health

The head of Jersey's Public Accounts Committee says answers are needed on why there is an overspend in the health department.

Deputy Inna Gardiner's comments follow the publication of the States of Jersey Annual Report and Accounts which showed the government's consolidated fund - essentially its current account - was in deficit, in part, because of extra health spending.

Gardiner said: "We need to establish if there is an inherent structural deficit in health or if it's a case of bad management of money."

Minister for Treasury and Resources Deputy Elaine Millar, who oversees all government spending, said it was not bad management and the health overspend was not a problem unique to Jersey.

'Spent wisely'

However, Gardiner said questions needed to be asked as the health budget had increased by nearly £100m since 2022.

She said: "We are all aware that the health department overspent in excess of £30m year after year after year.

"The health department budget in 2022 approved by the States Assembly was £226m. The budget approved for 2025 was £322m and we are already hearing that in 2025 the budget was constrained and they are going to overspend.

"So we need to understand what is happening there and how money can be spent wisely within the department."

The health minister told a scrutiny panel that he would need more money for health in the next few years

Millar said: "We have had to invest more into our health care spending and we are not alone in doing that.

"The cost of sending people off-island for specialist care, prescriptions are becoming more expensive and it's down to the nature of the population.

"So we have had to spend more on health and we've had to take money from contingency to meet those costs."

She added: "I don't think it's bad management of money... everyone is seeing healthcare costs going up, jurisdictions have ageing populations and we need to make sure we can provide services to our whole community."

On 30 April, in a meeting with the Health and Social Security Scrutiny Panel, the Minister for Health and Social Services, Deputy Tom Binet, said he would need more money for health during the next few years.

'Not a piggy bank'

Binet told the panel: "I'll be coming to the assembly to ask for money to improve preventative health care, and women's health issues will come into that and digital connectivity.

"We will need in excess of £100m over five years and I want that additional money, I don't care where it comes from, even if it's from the strategic reserve."

However, Millar said using the strategic reserve fund was not something that had been discussed.

Millar said: "The strategic reserve fund is there for a number of reasons.

"It's not a piggy bank that you can just draw on at will. But, clearly, we will look to how we fund health.

"Jersey has a reputation for prudent financial management, and it's essential we continue that reputation, that we spend money wisely and we use money from the right sources to fund all our expenditure needs."

Binet said Health had been facing "unprecedented demands, cost increases for drugs and off-island care - all running well above inflation and additional service requirements".

He said "studious efforts" had been made over the past two years "to implement savings measures in many areas, with quite a high degree of success".

"We require a large investment in both preventative health care and digital services over the next five years in order to improve efficiency and help reduce costs, and I have been clear about my intention to take a proposition to this effect to the assembly in the next few months," he said.

"I have also stated, publicly, that I intend to hold a public consultation on the possibility of introducing some charges, in some areas of health provision, before the end of this parliament."