Health Minister Mike Nesbitt has called for a “reality check” on the funding needs of health and social care in Northern Ireland.
Speaking today at the Assembly Health Committee, Mr Nesbitt said demand for services will inevitably keep growing and budgets will have to reflect this fact.
He outlined significant cost increases due to a number of factors including pay and price inflation, increased National Insurance contributions for GPs, pharmacists and social care providers, and rising demand.
The Minister said:
“As a result, my Department is projecting a funding gap of some £400m for 2025/26. The Health and Social Care system will be asked to deliver in the region of £200m in new savings for the second year running. That’s an ambitious and very challenging target and savings on this scale will inevitably impact on services. It is not without significant risk.
“There needs to be a reality check. Demand is always growing and the pressure for increased spending across many different services is immense. If we want to get waiting lists down, that will require investment. If we want more care outside of hospital, that will require investment. If we want to invest more in staffing, that too comes with a price tag.”
Mr Nesbitt referred to the recently published official population projections from NISRA.
The Minister said:
“The population aged 65 and over is projected to increase by 49.6% between mid-2022 and mid-2047. Likewise, the population aged 85 and over is projected to increase by 122.2% over the same period.
“Increased life expectancy is a massive achievement for society and modern medicine. With it come inescapable realities for public services and public spending. Older people need more health care and more social care.
“Demand will grow very sharply and that has massive budgetary implications. Yes, we can do things differently and, in some areas, slow the increase in costs. But let’s not pretend we can reduce or virtually freeze health spending – while providing the level of services we want and that the public rightly demand.”