The Department of Health and Social Care (DHSC) has requested a £15.3m supplementary vote from Tynwald to cover a budget overspend by Manx Care in the 2024-25 financial year.
Manx Care’s operational expenditure reached £362m, resulting in a £15.6m overspend.
Despite cost-saving measures, inflationary pressures, staff pay awards, and rising tertiary care costs contributed to the deficit. A DHSC underspend of £0.37m reduced the net overspend to £15.24m, prompting the £15.3m funding request.
The explanatory memorandum to Tynwald members states: “Manx Care’s total operational expenditure was £362m in 2024-25, resulting in an operational overspend of £15.6 million.”
Key factors included higher-than-expected pay awards, a 3.9% rise in off-island care tariffs, and increased drug and contract costs.
Cost-saving initiatives, such as reducing agency spending and workforce management, delivered £11.8m in savings.
However, the memorandum notes: “Inflationary pressures continue to be prevalent across the healthcare sector here and elsewhere, which offset and continue to outstrip saving levels received.”
Initially, a £20m supplementary vote was proposed to cover worst-case risks, but Tynwald deferred the decision until the final figures were confirmed.
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