Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Department incurred £3.5 billion in impairments for unused COVID-19 vaccines and medicines.
Conclusion
As well as the significant volumes of PPE it purchased, and is now disposing of, the Department entered into contracts for both COVID-19 vaccines and COVID-19 medicines which commit it to procure future stock. It recognised impairments on these contracts in 2021–22 of £1.7 billion for COVID-19 vaccines and £1.8 billion for COVID-19 8 Letter from DHSC to PAC, dated 16 March 2023 9 Q 84 10 Letter from DHSC to PAC, dated 16 March 2023 11 Qq 96, 100 12 Qq 98, 99 13 C&AG’s Report, para 5 14 Q 90 15 DHSC 2021–22 ARA, page 57 16 Letter from DHSC to PAC, dated 16 March 2023 17 Q 107 10 Department of Health and Social Care 2021–22 Annual Report and Accounts medicines with a limited shelf life which it now does not expect to use.18 We questioned the Department on why the impairments of COVID-19 vaccines and medicines were required and it confirmed that medicines were purchased as an ‘insurance policy’ at the beginning of the Omicron wave as there were concerns that it would be a vaccine-escaping variant and this would be protection for the most vulnerable. The Department however continued to explain that it would not expect to have such impairments in the future as there is no expectation that it would have to sign ‘onerous’ contracts again.19