NHS: Private Finance Initiative

Department of Health written question – answered on 5th February 2015.

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Photo of Keith Vaz Keith Vaz Chair, Home Affairs Committee, Chair, Home Affairs Committee

To ask the Secretary of State for Health, how much his Department has paid in debt repayments in respect of NHS PFI projects in the last three years.

Photo of Daniel Poulter Daniel Poulter The Parliamentary Under-Secretary of State for Health

Information on the estimated revenue payments for the lifetime of each health sector private finance initiative (PFI) contract can be found on the Treasury’s website at:


Open up the ‘Current projects as at 31 March 2014’ spreadsheet.

These are the latest estimates collected from each department for end of March 2014; the health sector schemes are clearly marked “Department of Health” and then “DH-Acute (i.e. Hospitals)”. The initial capital cost of each scheme is shown in Column R and the annual revenue payment in the columns headed ‘Unitary Charge Payment’.

The Treasury table shows that for the 105 NHS PFI schemes that have been signed, the estimated total revenue payments (over the lifetime of their contracts) are £79.0 billion. The revenue payment figures include not just the financing costs (debt repayment and interest) for initial construction but also the costs of all the other services such as building maintenance and support services (cleaning, catering, portering etc) provided over the lifetime of the contract. The payments are subject to meeting agreed performance and quality standards and include an annual uprate assumption for inflation of 2.5%.

Over the last three years the annual total repayments have been as follows:

2011/12 - £1,582 million

2012/13 - £1,733 million

2013/14 - £1,806 million

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