Trusts finance plans more realistic
In an analysis of the financial challenge for trusts, the provider organisation said changes made to support financial recovery had made the task more realistic.
A February survey of trusts showed 38% were more positive after receiving their control totals for 2019/20 – 13% would not sign up to their control totals, with 28% unsure.
A similar survey for 2018/19 showed that 18% would not agree their control totals, with 29% unsure. Further feedback since February suggests nearly all trusts will now sign up.
The median cost improvement programme saving level is 3.6%, significantly less than the 2018/19 survey average of 5%. While there has been an increase in the number of trusts reporting savings plans of less than 3%, 12% have plans for more than 6%.
Trusts said the variation was due to a number of factors, such as how funding for the Agenda for Change rises interact with staff grades mix.
Providers with local authority contracts – for example, for public health services – have not received funding to pay for AFC pay rises. It is estimated this will cost between £45m and £55m overall, although national negotiations are ongoing.
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