Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Accepted
Alongside reducing excess stock, the Department is also having to consider what is an appropriate...
Conclusion
Alongside reducing excess stock, the Department is also having to consider what is an appropriate level of PPE to hold as a stockpile. We asked it whether it had created another strategic reserve of PPE in preparation for the possibility of a future pandemic.11 The Department noted that it had a large “surplus”, but the size of the future stockpile it might hold had yet to be determined. Two factors were noted as having a large effect on this decision; the cost of storage and the potential for items in the stockpile to go out of date.12 The Department has seen how expensive storage costs can be over the last two years, spending £737 million on storage by the end of November 2021.13 It told us, however that it is now confident that it has reduced the monthly storage costs it is paying for PPE.14 However, it is still paying around £7 million a month in storage costs just on items it currently deems to be excess.15 The absence of a full integrated stock management system
Government Response Summary
Operational responsibility will transfer to the NHS Supply Chain on 1 April 2023, with the department retaining ownership of this stock for accounting purposes. The department’s current working assumption is that, subject to suitability, products held in excess will be transferred to a future stockpile.
Government Response
Accepted
HM Government
Accepted
1.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2023 1.2 The Department of Health and Social Care (the department) retains responsibility for managing excess stock and expects the operational responsibility will transfer to the NHS Supply Chain on 1 April 2023, with the department retaining ownership of this stock for accounting purposes. 1.3 The government continues to learn from the pandemic, including how best to prepare for future pandemics. This includes ensuring there is the right mix of countermeasures stockpiled to protect against future pandemic threats. The department’s current working assumption is that, subject to suitability, products held in excess will be transferred to a future stockpile. Discussions continue about how to ensure any stockpile is dynamic, thereby managing the risk that products expire before they are used. 1.4 The department’s efforts to reduce its excess stock, and therefore reduce storage costs, are informed by a range of factors including the waste hierarchy where prevention of waste is prioritised over recycling, with energy from waste as the last resort. The department has approximately 6 billion items of excess PPE (including do not supply products); representing 16% of the total stock purchased. This includes 3,120 million items of excess PPE that is ready for disposal now; where every avenue has been exhausted to use or re-purpose the stock. The department will continue to assess products on a case-by-case basis to determine the most appropriate exit route.