UK Health Security Agency’s financial controls remain unacceptably weak

Today, the Public Accounts Committee (PAC) has released a report criticizing the Department of Health and Social Care (DHSC) and the UK Health Security Agency (UKHSA) for their continued failure in financial management and accountability for public spending. This marks the second consecutive year of shortcomings in their financial controls, with the PAC unable to determine if taxpayers’ money has been appropriately utilized.

Despite urgent recommendations made in 2023 to establish robust financial controls and processes, UKHSA’s financial accounting remains deficient and un-auditable. The government’s failure to inform auditors in a timely manner about changes to COVID vaccine demand forecasts has exacerbated this issue.

The report also highlights the staggering £2.6 billion paid out for clinical negligence claims in 2022-23, with the government lacking an effective plan to minimize these costs. Particularly concerning is the £1.1 billion paid for negligence in maternity and neonatal services, representing a third of the NHS’ budget for these services. The cost of clinical negligence in England surpasses that of similar health systems in Australia, Canada, New Zealand, and Sweden.

Furthermore, the PAC expresses disappointment that the government still lacks a plan for stockpiling inventory, including PPE, for future pandemics, despite four years passing since the start of the COVID-19 pandemic. This failure risks disposing of items that could contribute to the nation’s strategic stockpile for future crises.

Dame Meg Hillier MP, Chair of the Committee, emphasized the importance of safeguarding taxpayers’ money and ensuring robust financial accountability. She criticized the DHSC’s oversight of spending and highlighted ongoing failures in the healthcare system, stressing the urgent need for an effective plan to reduce clinical negligence costs and improve patient safety.