UK Covid PPE Spending Scrutinised: £15bn Wasted, Says Watchdog Report

The UK Health Department has come under major criticism from the independent public spending watchdog, the National Audit Office (NAO), for writing down £14.9bn worth of personal protective equipment (PPE) and other medical items after the 2020 Covid-19 pandemic.

The NAO’s report has revealed the department failed to complete an “effective programme of year-end stock counts” to assess the quality and quantity of coronavirus-related items, such as lateral flow tests. The watchdog also found a “lack of adequate governance, oversight and control” at the UK Health Security Agency (UKHSA), which was established in April 2021 and became operational in October that year, with the aim of building on the work of Public Health England and NHS Test and Trace.

UK Health Department Write Down of £14.9bn

The NAO found that the department for health and social care (DHSC) did not complete an “effective programme of year-end stock counts” to assess the quality and quantity of coronavirus-related items, such as lateral flow tests.

During the last two financial years, the DHSC reported nearly £15bn of write down costs associated with PPE and other health items. The department estimated that the continuing cost of storage and disposal of excess and unusable equipment stands at £319mn.

The lack of effective stock count led to the write down of billions of pounds worth of PPE and medical items, which was seen as unacceptable by the NAO. The watchdog called on the DHSC and UK Health Security Agency (UKHSA) to work alongside the Treasury to improve financial governance, adding that the health department should put in place “adequate controls” over remaining coronavirus inventory to assess the quality and condition of items.

Criticism of UK Health Security Agency (UKHSA) 

Criticism was made of the UK Health Security Agency (UKHSA) for its lack of adequate governance, oversight, and control. The watchdog found that due to a “lack of sufficient, appropriate audit evidence and significant shortcomings in financial control” the NAO was unable to provide an audit opinion on the 2021-22 accounts of the agency.

UKHSA was established in April 2021 with the aim of building on the work of Public Health England and NHS Test and Trace, and became operational in October of that year. However, the NAO noted that the agency had faced a “challenging” environment, with high staff turnover and the pressures of responding to the pandemic. The watchdog also found that the health department failed to “sufficiently support or oversee” the UKHSA.

The NAO has called on the DHSC and UKHSA to work alongside the Treasury to improve financial governance and has urged the health department to put in place “adequate controls” over remaining coronavirus inventory to assess the quality and condition of items. The opposition Labour party accused the government of financial “carelessness” and the chair of the parliamentary committee of public accounts Meg Hillier has urged the department and UKHSA to “get a grip on fundamental failures in governance, oversight, and financial controls.”

Jenny Harries, Chief Executive of the UKHSA, has said that the agency takes the decision by the NAO “seriously” and that the agency was created in “unprecedented circumstances”. She added that the agency has already made good progress and will be working closely with DHSC to ensure future accounts are more robust.

The National Audit Office’s (NAO) report has brought to light the need for improvement in the financial governance of the UK Health Department and the newly established UK Health Security Agency (UKHSA). The report revealed a write down of £14.9bn for Personal Protective Equipment (PPE) and other medical items, which raises questions about the stock count’s ability to assess quality and quantity of COVID-related items.

The NAO’s inability to provide an audit opinion on the 2021-22 accounts of the UKHSA is a major concern, as the agency is responsible for securing the UK’s health security in the event of a pandemic. The report criticised the lack of adequate governance, oversight, and control in the UKHSA, which was established in April 2021 and became operational in October 2021. The high staff turnover and challenges in responding to the pandemic added to the challenges faced by the agency.

In light of these findings, the Department of Health and Social Care (DHSC) and UKHSA have been called upon to work with the Treasury to improve financial governance. The report recommended that adequate controls be established over the remaining COVID inventory, as the lack of transparency and assurance for parliament is unacceptable. The UK government must take immediate action to address the issues raised in the report and ensure that the UKHSA is equipped to effectively respond to future pandemics.

In the political arena, the recent £14.9bn write-down by the UK Health Department has sparked criticism and accusations. The Labour party has accused the government of financial carelessness, with the shadow health secretary Wes Streeting challenging the Conservatives’ abilities as stewards of public finances. The Chair of the parliamentary committee of public accounts, Meg Hillier, has also voiced concerns and urged for proper controls in public procurement.

These criticisms and calls for improvement highlight the need for more efficient financial governance in the health sector, especially when it comes to responding to pandemics. The government has acknowledged the need for improvement and has stated that the Department of Health and Social Care (DHSC) and the UK Health Security Agency (UKHSA) will work with the Treasury to address the financial governance issues. The aim is to establish adequate controls over the remaining COVID inventory and to provide greater transparency and assurance for parliament.

Response from UKHSA The UK Health Security Agency (UKHSA) has taken the decision by the National Audit Office (NAO) seriously and has acknowledged that improvements need to be made. Despite the challenges posed by the COVID-19 pandemic, the UKHSA has made good progress in terms of stability, governance, and financial controls. The agency has stated that it will work closely with the Department of Health and Social Care (DHSC) to ensure that future accounts are more robust.

Overall, the UKHSA is taking the NAO report seriously and is committed to making the necessary improvements to ensure that future accounts are more robust and that the agency can better respond to the challenges posed by the COVID-19 pandemic.

Conclusions and Recommendations

The report highlighted the lack of effective stock count and adequate governance, oversight, and control at the UK Health Security Agency (UKHSA). This has resulted in an unacceptable lack of transparency and assurance for Parliament.

In response to these criticisms, the DHSC and UKHSA have promised to work closely with the Treasury to improve financial governance, controls over the remaining COVID inventory, and the overall robustness of future accounts.

The government has defended their actions, stating that it was misleading to say that £14.9bn of taxpayers’ money was wasted. They argue that the response to the pandemic required procuring items to protect the public and frontline workers and the UK became the first country to deploy an approved COVID-19 vaccine.

However, despite these efforts, it is crucial that improvements are made to financial governance and transparency, particularly in the management of public procurement. The NAO has recommended that the DHSC and UKHSA continue to work closely with the Treasury to ensure that the public procurement processes are more robust and transparent in the future.

This report is a reminder of the importance of proper financial governance and effective procurement processes, particularly in times of crisis. The government must take the NAO’s findings seriously and work to implement the necessary improvements to prevent similar issues from arising in the future.

The write-down costs were for PPE and other medical items procured during the COVID-19 pandemic. The NAO found that there was a lack of effective stock count, which made it difficult to assess the quality and quantity of COVID-related items.

Additionally, the UK Health Security Agency (UKHSA) has faced criticism for a lack of adequate governance, oversight, and control. The NAO was unable to provide an audit opinion on the 2021-22 accounts of the UKHSA, which was established in April 2021 and became operational in October 2021. The agency faced challenges responding to the pandemic, including high staff turnover.

To address these issues, the Department of Health and Social Care (DHSC) and UKHSA have been called to work with the Treasury to improve financial governance. Adequate controls over the remaining COVID inventory and an unacceptable lack of transparency and assurance for parliament were among the key concerns raised. The Labour party accused the government of financial carelessness and the Shadow health secretary, Wes Streeting, argued against the Conservatives being stewards of public finances. The Chair of the parliamentary committee of public accounts, Meg Hillier, urged for proper controls in public procurement.

UKHSA has taken the NAO decision seriously and has made good progress in terms of stability, governance, and financial controls. The agency has pledged to work closely with DHSC to ensure future accounts are more robust. The government responded by stating that it was misleading to say that £14.9bn of taxpayers’ money was wasted. They argued that the response to the pandemic required procuring items to protect the public and frontline workers, and that the UK became the first country to deploy an approved COVID-19 vaccine.

It is crucial for the government to work with relevant agencies and the Treasury to address these issues and ensure that taxpayers’ money is being used in a transparent and accountable manner.

There’s also a huge public debate going on right now with many people asking who are the companies and people behind them who were able to secure the PPE contracts and now questions are being asked about by many about how these PPE contracts were awarded. Was there corruption going on between the government and those who benefited from receiving government money?

Sources:

This article was submitted to Sunderland Magazine by James McIntire on the 31st of January 2023


Get Sunderland Magazine in your inbox.

* indicates required

LEAVE A REPLY

Please enter your comment!
Please enter your name here