Vacancies in States lead to underspend
STAFF shortages proved a blessing and a curse for States departments last year, with vacancies leading to most ending the year under-budget – while Health & Social Care ended up with an overspend largely due to its having to pay a premium to bring in agency staff.
While HSC was £3.7m. overbudget, there was a £9.2m. overall underspend – or ‘favourable variance’ – across other committees.
The total amount spent on pay during the year, including agency and temporary staff, was £287.3m – up on the 2021 figure of £265.2m. – and this accounted for 35.5% of the total expenditure.
But while there was an increase of 31 in full-time equivalent staff compared to 2021, the total of 4,896 FTEs was lower than the 5,200 budgeted for under general revenue.
This increase was mainly due to HSC’s number of FTE staff increasing by 47 in the nurses and medical consultants’ category.
The report said the shortfall in reaching the budgeted figure reflected the number of vacancies across the majority of service areas.
HSC was within the budgeted number by about 100, ‘albeit the premium for agency staff drove an overspend on pay for that committee of £2.4m.’.
Pay awards led to a £3m. overcommitment on the budget reserve due to these being settled at a net £7m. above the budgeted total.
‘This additional unplanned cost was partially mitigated through lower Covid-related costs, including business support, a net £4m. within budget,’ said the report.
