Health to face further massive cuts

The health service is facing further severe cutbacks in 2011, with around 5% expected to be shaved off the health budget next year.

This follows a massive cut of €1.2 billion in the health budget this year. As a result of this year's cutback, the HSE has admitted that it is finding it difficult to maintain service delivery within the unprecedented budgetary restraints it is now labouring under.

The financial situation is exacerbated by the fact that the pay cuts, income gathering and job reduction targets aimed at meeting most of the deficit this year are not being reached, thereby leading to service cuts including bed closures.

Now, the health service is facing a cut of around 5% in its budget for next year as the Government seeks to make further inroads into its budget deficit.

Expected savings in overtime and other payments from changed work practices provided for under the Croke Park deal are not due to arrive by 2011, and income-generating but potentially politically sensitive measures such as a property tax and water charges have been long-fingered. The government also appears to be backing away from means-testing of child benefit.

Therefore, the focus for the 2011 Budget is expected to be on further spending cuts in departments such as Health.

[Posted: Mon 19/07/2010]