A price hike implemented by NHS England is burning a hole in Powys Teaching Health Board’s (PTHB) financial bottom line, a meeting has heard.

At a board meeting on 24 September, members were told that after five months of this financial year the budget is already performing just under £4 million worse than expected.

At the end of August, PTHB was reporting a £15.731m overspend against its 2025/2026 budget deficit, which is forecast to be £28.312m.

This is £3.933m more than the £11.798m deficit the health board had expected by this stage of the year – calculated on the £28.3m being divided by 12 and this sum then multiplied by five.

PTHB Finance Director Pete Hopgood explained that the problems were found in the costs of commissioning services for patients, which has contributed £3.7m to the overall overspend of £3.933m.

Mr Hopgood said: “The key pressure areas remain consistent and number one is our commissioned activity.

“An increased price is being applied in NHS England in relation to unplanned care.”

Unplanned care is when people are treated in hospital for an unexpected injury or illness.

Mr Hopgood told the board that it had been “previously assumed” that this increase in costs would be covered by the government.

Mr Hopgood said: “However we have received confirmation that is not the position.”

He added that other parts of PTHB were reporting underspend positions which was “helping” the overall financial position.

Mr Hopgood said: “The message is we’ll continue to focus on these areas of cost pressure to deliver best efficiency and value for money while maintaining the best care for our population.

“It’s important that all members of the board and budget holders are tasked with reducing their run rates (spending) wherever possible and where there are opportunities.”