Select Committee · Public Accounts Committee

DHSC Annual Report and Accounts 2023-24

Status: Closed Opened: 15 Jan 2025 Closed: 17 Jul 2025 21 recommendations 13 conclusions 1 report

In May 2024 , the PAC found that the Department of Health and Social Care (DHSC) and the UK Health Security Agency (UKHSA) had been getting the basics unacceptably wrong in their financial management and accountability for public spending – for the second year running. Its report expressed disappointment that, four years after the pandemic …

Clear

Reports

1 report
Title HC No. Published Items Response
25th Report - DHSC Annual Report and Accounts 2023-24 HC 639 14 May 2025 34 Responded

Recommendations & Conclusions

7 items
8 Recommendation 25th Report - DHSC Annual Report and Ac… Deferred

NHS England lacks detailed plan and cost estimates for workforce reduction.

We observed that the scale of change was bigger in NHS England than the Department, and so asked NHS England about its plans to reduce its workforce. It confirmed that it did not currently have a detailed plan to achieve that reduction. It told us it that it had implemented …

Government response. The government agrees with the recommendation regarding NHS England's workforce reduction plans and is currently developing its plans for staff transfers, with information on the size of resource functions expected to be confirmed in Autumn 2025.
HM Treasury
12 Recommendation 25th Report - DHSC Annual Report and Ac… Deferred

UKHSA's ageing high containment laboratories pose significant public health risk due to remedial investment needs.

UKHSA’s purpose is to prevent, prepare for and respond to infectious diseases and environmental hazards, and to provide scientific and operational leadership to protect the public’s health and to build the nation’s health security capability.UKHSA owns high containment science laboratories at Porton Down and Colindale, which are nearing the end …

Government response. The government agrees that an urgent decision is needed regarding the future location of UKHSA’s high-containment laboratories, but defers this decision until after the spending review and plans for the delivery model to be fully implemented by Spring 2026.
HM Treasury
17 Recommendation 25th Report - DHSC Annual Report and Ac… Deferred

Department fails to outline specific actions for reducing patient harm and improving safety.

The previous Committee were concerned that the Department was spending billions of pounds of taxpayers’ money without an effective plan to minimise future costs of the clinical negligence scheme.25 In April 2024, the Committee recommended that, by summer 2024, “the Department should set out the key reasons for patient harm …

Government response. The government agrees to prioritize patient safety and will continue ongoing work under the existing NHS Patient Safety Strategy. However, a review and update of this strategy, which will set out further actions, is deferred until after the overarching Quality …
HM Treasury
18 Conclusion 25th Report - DHSC Annual Report and Ac… Deferred

Significant proportion of clinical negligence compensation payments diverted to claimants' lawyers.

The Department told us that around 19% of the total compensation payments made in 2023–24 by NHS Resolution go to the claimants’ lawyers. This equates to £536 million of the total £2.8 billion paid to claimants in 2023–24 , which is over one–and–a–half times the amount spent by the Government …

Government response. The government agrees with the committee's concerns regarding rising clinical negligence costs, stating ministers will examine the drivers of costs and reform options, with a further response and implementation date to be advised.
HM Treasury
29 Recommendation 25th Report - DHSC Annual Report and Ac… Deferred

Department's persistent delays in publishing accounts continue to hamper timely financial accountability.

Timely production of accounts is essential to understanding public finances and supporting accountability.47 All Departments should aim to lay their accounts and those of their agencies no later than prior to the Parliamentary summer recess. Departments have a statutory deadline of 30 November to provide their accounts to the C&AG, …

Government response. The government agrees with the recommendation to lay accounts earlier, outlining a multi-year plan to incrementally bring forward publication despite significant capacity challenges in private sector audit firms, and will provide further details on this plan in September 2025.
HM Treasury
32 Recommendation 25th Report - DHSC Annual Report and Ac… Deferred

Many NHS bodies missed audit deadlines, requiring urgent timetable advancements and UKHSA improvements.

NHS England set a deadline of 28 June 2024 for the completion of the financial audits of NHS Commissioners and NHS Providers. Almost a fifth (18.0%) of NHS Providers and a tenth (9.5%) of NHS Commissioners missed the 28 June 2024 deadline.53 The previous Committee called on the Department to …

Government response. The government agrees to strengthen governance and financial controls to restore timely accountability and improve financial reporting, outlining a multi-year plan to incrementally bring forward publication of its Annual Report and Accounts, with further details to be provided in September …
HM Treasury
34 Recommendation 25th Report - DHSC Annual Report and Ac… Deferred

Department aims for pre-summer accounts by 2026-27, contingent on local audit market capacity.

In September 2024, the Department told us that its aim was to lay its accounts in Parliament at least a month earlier each year and that its target was to reach a pre–summer recess laying for the 2026–27 financial year.57 Given the issues within local authority audit, we asked NHS …

Government response. The government agrees with the recommendation to achieve timely laying of accounts and addresses the need to improve local audit, outlining a multi-year plan to incrementally bring forward publication, and will provide further details on this plan in September 2025.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
13 Mar 2025 Andy Brittain · Department of Health and Social Care (DHSC), Julian Kelly · NHS England, Professor Dame Jenny Harries · UK Health Security Agency, Professor Sir Chris Whitty · Department for Health and Social Care View ↗

Correspondence

8 letters
DateDirectionTitle
15 Dec 2025 To cttee Letter from the Permanent Secretary at the Department for Health and Social Car…
8 Dec 2025 To cttee Letter from the Chief Executive of NHS England relating to the Committee’s Twen…
17 Nov 2025 To cttee Letter from the Permanent Secretary of the Department for Health and Social Car…
4 Sep 2025 To cttee Letter from the Secretary of State for Health and Social Care relating to the D…
8 May 2025 To cttee Letter from the Interim Permanent Secretary of the Department of Health and Soc…
28 Apr 2025 To cttee Letter from the Interim Permanent Secretary of the Department of Health and Soc…
24 Apr 2025 To cttee Letter from the Chief Financial Officer at NHS England relating to the oral evi…
20 Mar 2025 To cttee Letter from the Chief Executive of the Independent Healthcare Providers Network…