NHS IT scheme underspends for fourth year running

Parts of the NHS IT programme are behind schedule

Connecting for Health, the agency overseeing the £12.7bn NHS National Programme for IT (NPfIT), will spend £331m less than anticipated on the scheme this year, according to figures released by the government.

In a written answer to parliament, health minister Ben Bradshaw said £586m of capital expenditure was expected this year, compared to £917m that had been planned.

This will be the fourth consecutive year the scheme has underspent significantly, with only £3.5bn of the £12.7bn allocated to the programme so far being used due to slower than expected progress, particularly on the care records service, which is now four years behind schedule.

Tough original contracts meant suppliers would only be paid for work done, and many have found the slow progress has made the scheme unprofitable.

Accenture withdrew from the scheme in 2006, Fujitsu had its contract terminated last year, and BT Global Services recently announced a £336m one-off charge and a review of its major contracts, one of which is widely believed to be the NPfIT.

The planned expenditure for the scheme in 2009-10 is £800m.