Why Sheffield's NHS trusts were left out of debt write offs

Sheffield's three NHS trusts were left out of the list of providers getting millions of debt written off.
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It comes as part of government plans to scrap £13.4 billion of NHS debt across England.

Across South Yorkshire, a total of £195.8 million was written off, with Doncaster and Bassetlaw Hospitals NHS Foundation Trust losing the biggest chunk at nearly £71m.

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However, Sheffield's teaching hospitals, children's and health and social care foundation trusts had none.

Sheffield Childrens Hospital

Picture Dean AtkinsSheffield Childrens Hospital

Picture Dean Atkins
Sheffield Childrens Hospital Picture Dean Atkins

A spokesman for Sheffield Health and Social Care NHS Foundation Trust said it was not included because it did not have any debt to write off.

He said: “We have been successful in achieving our financial targets for a number of years and historically we have been in a good position financially.

“This has meant we have not had to rely on loans or central support. As a result the government's debt write off has no impact on us."

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Sheffield Children's NHS Foundation Trust said it was left out as it has a different kind of debt.

A spokesman said: “The government scheme referenced for NHS debt only covers a certain type of debt. The loans held by Sheffield Children’s NHS Trust are unfortunately not covered by the government scheme."

Sheffield Teaching Hospitals NHS Trust was also not included on the list, but did not comment.

The debt cancellation of other services was widely interpreted as being in response to the coronavirus outbreak, but the Health Service Journal has reported it was under discussion prior to the pandemic.

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Struggling NHS providers have become increasingly reliant on loans from the Department for Health and Social Care to balance their day-to-day budgets or their capital budgets, which fund infrastructure projects.

Under the new rules set out in a letter to all NHS trusts, hospitals needing extra cash will be given equity, rather than borrowing from the government and repaying a loan.

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