NHS spending: Inflation and demand growth to wipe out almost all new funding

Published

2 years ago

November 18, 2022

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Nearly all of the new NHS funding announced by the chancellor will be eaten up by the costs of inflation and growing demand, with just £800m left over for the improvement of services.

In his autumn statement, Jeremy Hunt promised an additional £3.3bn in funding for the NHS for each of the next two years.

Analysis by the Nuffield Trust, shared exclusively with Sky News, suggests that rising prices and growing demand will use up three quarters of next year’s increase, and the entirety of the increase scheduled for 2024/25.

Half of the total funding boost is likely to be eaten up by inflation, as the UK endures a second year of rising prices. A Sky News analysis found that energy price increases added £121m to the running cost of NHS buildings in the year to March.

Inflation is expected to cost the health service £3.2bn over the next two years, while increased demand from a growing and ageing population is expected to cost the NHS a further £852m next year and £1.7bn the year after.

That leaves just £795m left over for improving services next year, a quarter of the £3.3bn headline funding boost.

The increase scheduled for 2024/25, meanwhile, is set to be entirely taken up in dealing with the pressures of inflation and growing demand.

John Appleby, chief economist at the Nuffield Trust, said that the final amount “could be higher or lower”, depending on whether trusts overspend and whether certain key costs, like nurses’ pay, increase faster than expected.

Nurses are set to go on strike next month over the government’s decision not to raise their pay in line with inflation.

Rising energy costs are already putting NHS England’s finances under strain. Sky News analysis of data from NHS Digital found that an 18% rise in fuel prices added £121m to the running costs of the health service’s buildings in the year to March.

Many NHS trusts expect costs to rise further. A recent report by the British Medical Journal found that some trusts were budgeting for an additional £2m per month in fuel costs next year.

Nottingham University Hospitals NHS Trust confirmed to Sky News that it expects its annual energy bills to more than triple in 2023, adding £24m to its running costs.

It’s not just energy prices that are rising. The increased costs of hiring cleaners, for instance, has added £76m to the health service’s expenses over the past year, while higher costs for providing inpatient meals has added a further £38m.

Matthew Taylor, chief executive of NHS Providers, told Sky News that the new money promised by the chancellor would allow the NHS to “just about keep the show on the road”.

“It will enable us to continue to manage a very difficult situation, and hopefully make further progress in areas like waiting lists.

“What it won’t do is address the fundamental issues and get the NHS to where the public would like it to be.”

More than 7 million people in England are currently waiting for treatment. That’s nearly one in eight of the population, and the number has been rising for 28 consecutive months.

The number of people waiting more than four hours at A&E is also at record levels, while ambulance response times are far above target.

David Maguire, senior analyst at the King’s Fund, told Sky News that local NHS trusts were likely to face “really, really tough decisions” about where to focus their resources in the coming years.

“You always have to prioritise emergency and urgent care. That might mean less focus on goals like improving productivity or investing in preventative care. We’re already seeing a pull back at the NHS England-level on some of the funding for transformation efforts, for example around digital technology and data usage.”

This wouldn’t be the first time the NHS has cut back on long-term investments in order to free up resources for frontline services.

Between 2014 and 2019, £4.3bn earmarked for capital investment was instead used to fund day-to-day spending.

That decision has left the NHS with a backlog of maintenance work worth £10.2bn – equivalent to 92% of the entire annual cost of running the NHS estates.

Nearly a fifth of that backlog (£1.8bn worth) is classified as “high risk”, meaning it could result in “catastrophic failure, major disruption to clinical services or deficiencies in safety liable to cause serious injury or prosecution”.

“We’ve got some hospitals which are currently being held up by struts,” said Mr Taylor.

“That’s not what you want people to be doing – lying in a hospital bed looking at a temporary strut holding up the roof. These hospitals aren’t currently dangerous, but in time they will become dangerous and this needs to be addressed.”

Dealing with the maintenance backlog is increasingly hampering the ability of trusts to invest in improving services. Last year, the NHS spent £1.4bn dealing with the maintenance backlog, 16% of its entire capital budget.

And that capital budget is already low by international standards. In the decade before the pandemic, OECD data shows, the UK’s long-term investments in the healthcare sector amounted to just 0.25% of GDP – compared to 0.38% in France and 0.69% in the US.

Reducing the waiting list

In order to reduce the number of patients waiting for treatment, NHS England set a target in February of returning NHS activity to pre-pandemic levels by early 2022-23, and increasing activity a further 29% within two years.

Thousands of additional staff have been hired in recent years, but the impact of COVID-19 and the demand of the target means that the NHS is still short of staff.

Trusts are increasingly hiring expensive agency workers to fill the gaps, adding further pressure to the budget.

Spending on agency workers reached £3bn in the year to March, up from £2.4bn two years earlier.

Hours before the chancellor’s statement on Thursday, the National Audit Office said the NHS was unlikely to meet its activity targets, pointing to the impact of inflation, staff shortages and productivity issues.

Despite a 13% increase in the number of clinical staff since 2018, the number of people being removed from the NHS waiting list each month has risen by just 2%.

NHS chief executive Amanda Pritchard said the chancellor’s decision to increase funding for the health service showed that “the government has been serious about its commitment to prioritise the NHS”.

“While I am under no illusions that NHS staff face very testing times ahead, particularly over winter, this settlement should provide sufficient funding for the NHS to fulfil its key priorities,” she said.

UK

Who was at the Pope’s funeral – and who wasn’t

Published

3 hours ago

April 26, 2025

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Who was at the Pope's funeral - and who wasn't

The Pope’s funeral is taking place today at St Peter’s Basilica at the Vatican.

A pope’s funeral traditionally brings world leaders together, and several were in attendance.

Watch full coverage of the Pope’s funeral live on Sky News from 8am

Here’s a look at the list.

Prince William

The Prince of Wales attended the funeral of Pope Francis on behalf of the King.

The King was in Rome with Queen Camilla earlier this month, and met the pontiff at the Vatican.

The trip came just a week-and-a-half after Buckingham Palace confirmed the King had been taken to hospital following side effects related to his ongoing cancer treatment.

Sir Keir Starmer

Number 10 confirmed the prime minister received an invite and so he attended the ceremony.

Speaking on Tuesday, Sir Keir said there had been “an outpouring of grief and love” for the Pope.

He added: “I think it reflects the high esteem in which he was held, not just by millions and millions of Catholics, but by many others, across the world, myself included.”

Donald Trump

The US president was one of the first to confirm he would be flying to Rome, adding he would be joined by first lady Melania Trump.

Writing on his social media platform Truth Social on Monday, he said: “Melania and I will be going to the funeral of Pope Francis, in Rome. We look forward to being there!”

The Pope had been critical of Mr Trump at times during his tenure.

In January, he said it would be a “disgrace” if the president went ahead with his crackdown on immigration, telling an Italian television station: “It would make the migrants, who have nothing, pay the unpaid bill.

“It doesn’t work. You don’t resolve problems this way.”

Volodymyr Zelenskyy

The Ukrainian president, who met the Pope three times, was also in attendance – and there was an outbreak of applause for him when he arrived.

Mr Zelenskyy has said his country is grieving the Pope and recalled how he often prayed for peace in Ukraine.

Emmanuel Macron

The French President Emmanuel Macron also attended the funeral with his wife Brigitte.

In his tribute on Monday, Mr Macron said of the Pope: “In this time of war and brutality, he had a sense for the other, for the most fragile.”

Giorgia Meloni

The Italian premier, along Argentine leader Javier Milei (below) had place of pride in the seating order for the service.

The Vatican is, of course, surrounded by the Italian capital Rome, while the Pope was born and grew up in Argentina and was once Archbishop of Buenos Aires.

Javier Milei

The president of Pope Francis’s native Argentina was also at the ceremony, despite having launched insults at Francis in recent years.

Before taking office in December 2023, the far-right politician called him “an imbecile, the representative of evil on Earth”.

Mr Milei alluded to their “differences” in his tribute to the late Pope, writing: “It is with profound sorrow that I learned this sad morning that Pope Francis, Jorge Bergoglio, passed away today and is now resting in peace.

“Despite differences that seem minor today, having been able to know him in his goodness and wisdom was a true honour for me.”

Joe Biden

Former US president Joe Biden, 82, was at the funeral with his wife Jill. The couple were seen taking their places in the bright sunshine prior to the service.

Mr Biden appeared to be getting some help to his seat, taking the arm of a member of the church.

Lula da Silva

The Brazilian president and first lady Janja Lula da Silva were also at the funeral.

Brazil had also declared a seven-day mourning period for the Pope.

“Humanity is today losing a voice of respect and welcome for others,” the president said in his tribute.

“Pope Francis lived and propagated in his daily life the love, tolerance and solidarity that are the basis of Christian
teachings.”

Ursula von der Leyen

The EU Commission President confirmed she was attending after calling Francis a worldwide inspiration.

“He inspired millions, far beyond the Catholic Church, with his humility and love so pure for the less fortunate,” she said in her tribute.

Council President Antonio Costa, Parliament President Roberta Metsola was also expected to be in attendance.

Here are some of the other notable attendees:

• Ireland’s taoiseach Micheal Martin
• Spain’s King Felipe and Queen Letizia
• Albanian president Bajram Begaj
• Angola’s president Joao Lourenco
• Austrian president Alexander Van der Bellen
• Bangladesh’s chief adviser and interim leader Muhammad Yunus
• Belgium’s King Philippe and Queen Mathilde, along with prime minister Bart De Wever
• Canada’s governor general Mary Simon
• Cape Verde president Jose Maria Neves
• Croatia’s president Zoran Milanovic
• Cyprian president Nikos Christodoulides
• Czech Republic’s prime minister Petr Fiala
• Democratic Republic of Congo president Felix Tshisekedi
• Dominican Republic’s president Luis Abinader
• East Timor’s president Jose Ramos-Horta
• Ecuador’s president Daniel Noboa
• Estonia’s president Alar Karis
• Finland’s president Alexander Stubb
• Gabon’s president Brice Oligui Nguema
• German president Frank-Walter Steinmeier and outgoing chancellor Olaf Scholz
• Greece’s prime minister Kyriakos Mitsotakis
• Honduras president Xiomara Castro
• Hungary’s president Tamas Sulyok
• Italy’s president Sergio Mattarella and prime minister Giorgia Meloni
• Latvian president Edgars Rinkevics
• Lithuanian president Gitanas Nauseda
• Moldova’s president Maia Sandu
• Netherlands’ prime minister Dick Schoof
• New Zealand’s prime minister Christopher Luxon
• Norway’s Crown Prince Haakon and Crown Princess Mette-Marit
• The Philippines’ president Ferdinand Marcos Jr
• Poland’s president Andrzej Duda
• Portugal’s president Marcelo Rebelo de Sousa and prime minister Luis Montenegro
• Romania’s interim president Ilie Bolojan
• Sweden’s King Carl XVI Gustaf, Queen Silvia and prime minister Ulf Kristersson
• Switzerland’s president Karin Keller-Sutter

Who was not there?

Vladimir Putin

The Russian president did not attend the funeral.

But the controversial leader paid tribute to the Pope, writing a message to Cardinal Kevin Farrell, who is interim chief of the Catholic Church.

“Please accept my most sincere condolences on the passing of His Holiness Pope Francis,” Mr Putin said.

“Throughout the years of his pontificate, he actively promoted the development of dialogue between the Russian
Orthodox and Roman Catholic churches, as well as constructive cooperation between Russia and the Holy See.”

Benjamin Netanyahu

Israeli Prime Minister Benjamin Netanyahu also did not attend the ceremony, with the country’s ambassador Yaron Sideman going instead.

The Jewish state and the Vatican have had strong relations in the past, with Israel sending a presidential delegation to the funeral of Pope John Paul II in 2005, and Pope Francis visiting Israel in 2014.

But their relationship has deteriorated since the start of the war in Gaza.

A month after the conflict started in 2023, a dispute broke out over whether Pope Francis had used the word “genocide” to describe events in Gaza. Palestinians who met with him said he did, but the Vatican said he did not.

The Pope met relatives of Israeli hostages on the same day.

Israeli officials have since lobbied the Vatican to be more forceful in its condemnation of Hamas.

In January, the Pope called the humanitarian situation in Gaza “shameful”, prompting criticism from Rome’s chief rabbi, Riccardo Di Segni, who accused Francis of “selective indignation”.

Rabbi Di Segni said he would be attending the funeral, despite it taking place on the Jewish sabbath.

Was there a seating plan?

The seats were assigned in advance, with the heads of state sitting in French alphabetical order based on their country’s name, rather than on the individual’s.

This applied to everyone apart from the presidents of Italy and Argentina, who got the best seats because the Pope lived in Italy and was an Argentinian native.

UK

Virginia Giuffre, who accused Prince Andrew of sexual assault, has died, her family says

Published

9 hours ago

April 26, 2025

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Virginia Giuffre, who accused Prince Andrew of sexual assault, has died, her family says

Virginia Giuffre, who accused Prince Andrew of sexual assault, has died aged 41.

In a statement to Sky’s US partner network NBC News on Friday, her family said she took her own life in the Perth suburb of Neergabby, Australia, where she had been living for several years.

“It is with utterly broken hearts that we announce that Virginia passed away last night at her farm in Western Australia,” her family said.

“She lost her life to suicide, after being a lifelong victim of sexual abuse and sex trafficking.

“Virginia was a fierce warrior in the fight against sexual abuse and sex trafficking. She was the light that lifted so many survivors.

“In the end, the toll of abuse is so heavy that it became unbearable for Virginia to handle its weight.”

Police said emergency services received reports of an unresponsive woman at a property in Neergabby on Friday night.

“Police and St John Western Australia attended and provided emergency first aid. Sadly, the 41-year-old woman was declared deceased at the scene,” a police spokeswoman said.

“The death is being investigated by Major Crime detectives; early indication is the death is not suspicious.”

Sexual assault claims

Ms Giuffre sued the Duke of York for sexual abuse in August 2021, saying Andrew had sex with her when she was 17 and had been trafficked by his friend, the billionaire paedophile Jeffrey Epstein.

The duke has repeatedly denied the claims, and he has not been charged with any criminal offences.

In March 2022, it was announced Ms Giuffre and Andrew had reached an out-of-court settlement – believed to include a “substantial donation to Ms Giuffre’s charity in support of victims’ rights”.

She stuck by her version of events until the end

Of the many dozens of victims of Jeffrey Epstein, it was Virginia Giuffre who became the most high-profile.

She was among the loudest and most compelling voices, urging criminal charges to be brought against Epstein, waving her right to anonymity in 2015.

She told how he and Ghislaine Maxwell groomed her and “passed around like a platter of fruit” to be used by rich and powerful men.

But her name and face became known around the world after she accused Prince Andrew of sexually abusing her when she was 17 years old.

The picture of her together with the prince and Maxwell at the top of a staircase, his hand around her waist, is the defining image of the whole scandal.

Prince Andrew said he had no memory of the occasion. But Giuffre stuck by her version of events until the end.

‘An incredible champion’

Sigrid McCawley, Ms Giuffre’s attorney, said in a statement that she “was much more than a client to me; she was a dear friend and an incredible champion for other victims”.

“Her courage pushed me to fight harder, and her strength was awe-inspiring,” she said. “The world has lost an amazing human being today.”

“Rest in peace, my sweet angel,” she added.

Dini von Mueffling, Ms Giuffre’s representative, also said that “Virginia was one of the most extraordinary human beings I have ever had the honour to know”.

“Deeply loving, wise, and funny, she was a beacon to other survivors and victims,” she added. “She adored her children and many animals.

“She was always more concerned with me than with herself. I will miss her beyond words.

“It was the privilege of a lifetime to represent her.”

Ms Giuffre said at the end of March she had four days to live after a car accident, posting on social media that “I’ve gone into kidney renal failure”. She was discharged from hospital eight days later.

Raised mainly in Florida, she said she was abused by a family friend early in life, which led to her living on the streets at times as a teenager.

She said that in 2000, she met Ghislaine Maxwell, a British socialite who was convicted in 2021 on federal sex trafficking and conspiracy charges and was sentenced to 20 years in prison.

Ms Giuffre said Maxwell then introduced her to Epstein and hired her as his masseuse, and said she was sex trafficked and sexually abused by him and associates around the world.

‘A survivor’

After meeting her husband in 2002, while taking massage training in Thailand at what she said was Epstein’s behest, she moved to Australia and had a family.

She founded the sex trafficking victims’ advocacy charity SOAR in 2015, and is quoted on its website as saying: “I do this for victims everywhere.

“I am no longer the young and vulnerable girl who could be bullied. I am now a survivor, and nobody can ever take that away from me.”

:: Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.

UK

Who will be at the Pope’s funeral – and who won’t be

Published

9 hours ago

April 26, 2025

admin

Who will be at the Pope's funeral - and who won't be

The Pope’s funeral will take place today at St Peter’s Basilica at the Vatican.

A pope’s funeral traditionally brings world leaders together, and some have already revealed they are attending.

Watch full coverage of the Pope’s funeral live on Sky News from 8am

Here’s a look at the list.

Prince William

The Prince of Wales will attend the funeral of Pope Francis on behalf of the King, Kensington Palace has said.

The King was in Rome with Queen Camilla earlier this month, and met the pontiff at the Vatican.

The trip came just a week-and-a-half after Buckingham Palace confirmed the King had been taken to hospital following side effects related to his ongoing cancer treatment.

Sir Keir Starmer

Number 10 has confirmed the prime minister received an invite and will attend the ceremony.

Speaking on Tuesday, Sir Keir said there had been “an outpouring of grief and love” for the Pope.

He added: “I think it reflects the high esteem in which he was held, not just by millions and millions of Catholics, but by many others, across the world, myself included.”

Donald Trump

The US president was one of the first to confirm he would be flying to Rome, adding he would be joined by first lady Melania Trump.

Writing on his social media platform Truth Social on Monday, he said: “Melania and I will be going to the funeral of Pope Francis, in Rome. We look forward to being there!”

The Pope had been critical of Mr Trump at times during his tenure.

“It doesn’t work. You don’t resolve problems this way.”

Volodymyr Zelenskyy

The Ukrainian president, who met the Pope three times, is expected to attend, according to officials in Ukraine.

In his tribute, Mr Zelenskyy said his country was grieving the Pope and recalled how he often prayed for peace in Ukraine.

Emmanuel Macron

The French president told local reporters he would be going to the funeral.

In his tribute on Monday, Mr Macron said of the Pope: “In this time of war and brutality, he had a sense for the other, for the most fragile.”

Javier Milei

The president of Pope Francis’s native Argentina will attend, despite having launched insults at Francis in recent years.

Before taking office in December 2023, the far-right politician called him “an imbecile, the representative of evil on Earth”.

“Despite differences that seem minor today, having been able to know him in his goodness and wisdom was a true honour for me.”

Lula da Silva

The Brazilian president and first lady Janja Lula da Silva will be at the funeral, the country’s government announced.

Brazil has also declared a seven-day mourning period for the Pope.

“Humanity is today losing a voice of respect and welcome for others,” the president said in his tribute.

“Pope Francis lived and propagated in his daily life the love, tolerance and solidarity that are the basis of Christian
teachings.”

Ursula von der Leyen

The EU Commission President confirmed she would be attending after calling Francis a worldwide inspiration.

“He inspired millions, far beyond the Catholic Church, with his humility and love so pure for the less fortunate,” she said in her tribute.

Council President Antonio Costa, Parliament President Roberta Metsola are also expected to attend.

Here are some of the other notable attendees:

Who won’t be there?

Vladimir Putin

The Russian president will not be attending the funeral, the Kremlin has confirmed.

But the controversial leader paid tribute to the Pope, writing a message to Cardinal Kevin Farrell, who is interim chief of the Catholic Church.

“Please accept my most sincere condolences on the passing of His Holiness Pope Francis,” Mr Putin said.

Benjamin Netanyahu

The Israeli prime minister is not expected to attend, with the country’s ambassador Yaron Sideman going instead.

But their relationship has deteriorated since the start of the war in Gaza.

The Pope met relatives of Israeli hostages on the same day.

Israeli officials have since lobbied the Vatican to be more forceful in its condemnation of Hamas.

In January, the Pope called the humanitarian situation in Gaza “shameful”, prompting criticism from Rome’s chief rabbi, Riccardo Di Segni, who accused Francis of “selective indignation”.

Rabbi Di Segni says he will be attending the funeral, despite it taking place on the Jewish sabbath.

Is there a seating plan?

The seats are assigned in advance, with the heads of state sitting in French alphabetical order based on their country’s name, rather than on the individual’s.

This applies to everyone apart from the presidents of Italy and Argentina, who get the best seats because the Pope lived in Italy and was an Argentinian native.