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2 April 2020

Government writes off £13.4bn of NHS trust debt as part of 'major financial reset' for NHS providers

Introduced by

Department of Health and Social Care

Targeted at

NHS trusts

Timings

Announced on 2 April 2020. Debt written off at 31 March, new financial model from start of new financial year

Stated aims

To free up NHS trusts to invest in maintaining vital services and longer term infrastructure improvements, and to make sure the NHS has the necessary funding and support to respond to COVID-19

Summary

This is the announcement that more than 100 NHS hospitals are to be rid of historic debt totalling more than £13bn. The debt will be written off by converting the loans to equity; if hospitals need extra cash, it will now be given as equity rather than as a loan.

Source(s)

Gov.uk press release