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Northern Ireland to Reset Healthcare System to Address £600m Deficit

New permanent secretary Mike Farrar is finalizing sweeping savings plans combining trust cuts with a bid for £200m to fund health worker pay awards

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Overview

  • Stormont’s health service faces a £600m budget gap, including £200m earmarked for pay rises for nurses, doctors and other staff.
  • Mike Farrar is finalizing plans for up to £300m in savings, primarily through deep cuts and efficiency measures across HSC trusts.
  • A ministerial direction compels the department to fund the £200m pay awards despite no budget allocation, risking a departmental overspend.
  • Farrar has appealed to the Stormont Executive and Assembly for short-term funding support to cover pay increases and stabilize services.
  • He remains optimistic that a full system reset supported by investments in platforms like Encompass could transform Northern Ireland into a leading health system.