POWYS TEACHING Health Board (PTHB) ended the 2025/2026 financial year with a £33.275 million overspend and an underlying deficit of £45.1 million.
At meeting on Wednesday, May 20, PTHB board members received a draft report on how the budget for 2025/2026 finished at the end of March.
The deficit is £4.963 million more than the £28.312 million deficit budget that had been expected by the Welsh Government.
In March 2025, the board had agreed a budget plan with a deficit of £38.4 million – but in May this was knocked down to £28.3 million by the Welsh Government.
The deficit is slightly less than the £33.312 million overspend position that had been communicated back to the Welsh Government in December.
This is when it became apparent the health board would not be able to find all of the £10.1 million needed to make the £28.3 million figure.
This meant that during 2025/2026 the health board has spent £516.135 million – when it’s total income is £482.86 million
Director of finance Pete Hopgood said: “This figure is subject to the end of year annual accounts audit process.
“The key message is that the main contributors to our underlying deficit are: our spend on health care services provided by other bodies, our spend in relation to complex care, and our spend in relation to private mental health providers.”
He explained that the health board has a “significant level of vacancies” which has a “knock on effect” on having to spend on expensive agency staff.
Mr Hopgood continued: “What is pleasing to note is our delivery against savings targets.
“Against a target of £23 million we have delivered £22.85 million which is a significant achievement for the health board, and a big thank you goes out to all our budget holders, controllers of spend and all those involved in identifying those savings.”
He added that £10.4 million of the £22.85 million will be saved on a “recurrent basis.”
Board member for finance Steve Elliott said: “The reasons for the deficit are well understood.
“The out-turn is in line with the forecast position being reported to Welsh Government since Christmas and several contributing factors to the deficit have been outside the control of the health board, particularly in relation to the pricing arrangements in England.
PTHB chairman Carl Cooper said: “Clearly we are acutely aware as a board that financially we are not where we want to be, and we have plans in place to recover that position over time.”
Independent board member Jennifer Owen-Adams asked for assurance that the drive to find savings is not having a “knock-on affect” on delivering quality services.
Mr Hopgood explained that savings proposals go through a thorough assessment process and are monitored for “unforeseen consequences” and corrected if need be.
Medical direct or Kate Wright said: “We’re working very hard to make sure that any efficiencies are as far away from patient care as they possibly can be.
“This is why listening to staff and patients is really important.
“Not all efficiencies produce harm; some can improve the safety and quality experience which is our ultimate goal.”
The board voted to approve the report.
