The DHSC is to receive an extra £45m in its budget this year, driven by demands placed on Manx Care.
This takes the total budget for health and social care to £412m, 28% of total public spending.
Treasury Minister Chris Thomas’ first budget marks the first departure from the funding formula set out following the Independent Review of the Isle of Man Health and Social Care System.
Overall healthcare spending has increased from £289m in 2022-23 to £412m in 2026-27, but saw overspends totalling £93.4m over the three financial years up to 2024/25.
We don’t yet know what Manx Care’s full spend for this year, but it is expected to exceed the full £361m it received, which included over £14m extra.
This has promoted Chris Thomas to warn: “Healthcare is important but the sustained and substantial increase in costs in recent years remains a significant risk to the achievement of our medium-term financial plan.”
Contingency
Mr Thomas said Manx Care/DHSC will also have access to a £10m contingency, but this has been taken out of the hands of the DHSC after the highly controversial circumstances of last year’s budget.
Instead, the extra Treasury has taken control of the health service’s contingency fund following last year’s budget overspend, as part of what the minister describes as “safeguards” to prevent a repeat of the controversy.
Treasury Minister Chris Thomas acknowledged the move was prompted by last year’s situation, when an extra £4 million was handed to Manx Care days after the budget was passed.
“Access to the contingency fund is controlled by the Treasury now, and I’m not saying there won’t be a contingency fund application, but we are cognisant of that process,” he said.