The Christie Foundation Trust Annual Report and Accounts 2021-22

Consolidated Accounts of The Christie NHS Foundation Trust 2021-2022

17. Provisions for liabilities and charges

All Provisions for liabilities and charges of The Christie NHS Foundation Trust Group are by The Christie NHS Foundation Trust. The Christie Charitable Fund and The Christie Pharmacy Limited do not have any provisions.

Group

Current

Non-current

31 March 2022

31 March 2021

31 March 2022

31 March 2021

£000

£000

£000

£000

Pensions - early departure costs Pensions - ill health retirement

16 27

15 34 22

87

99

503

490

Personal injury claims

0 0

5

0 0

Legal claims

243

363

Other

334

1,216

1,200

649

Total

1,507

1,634

1,226

936

Pensions

Legal

Other

Total

Pensions

Personal injury claims

Ill health retirement

early departure costs

Claims

£000

£000

£000

£000

£000

£000

537

114

22

363

1,534

2,570

At 1 April 2021

Change in discount rate

19

2

0

0

0

21

Arising during the year

0

0

7

242 (15)

594

843 (86)

(34)

(15)

(21)

0

Utilised during the year

0

0 2

(2)

(347)

(263)

(612)

Reversed unused

(4)

0

0

0

(2)

Unwinding of discount

517

103

5

243

1,865

2,734

At 31 March 2022

Expected timing of cash-flows: Not later than 1 year Later than 1 year not later than 5 years

27

16 48 39

5 0 0

243

1,216

1,507

114 376

0 0

110 539

273 954

Later than 5 years

517

103

5

243

1,865

2,734

The above provision for personal injury is based upon information supplied by the NHS Litigation Authority. The associated contingent liability is shown under note 18.1.

Other provisions are:

£000 1,158

VAT*

563

Clinicians' tax provision **

144 1,865

Final pay control***

* The VAT provision is an estimate of VAT due to HMRC as a result of changes in NHS VAT guidance and an ongoing review by HMRC.

** Clinicians who are members of the NHS Pension Scheme, and who as a result of work undertaken, face a tax charge in respect of the growth of their NHS pension benefits above their pension savings annual allowance threshold are able to have this charge paid by the NHS Pension Scheme. The Trust has a contractually binding commitment to pay the corresponding amount on retirement to ensure that they are fully compensated. This provision is broadly equal to the commitment. NHS England will refund the payments and a corresponding asset is recognised in receivables (note 13.1).

*** Final pay control charges may arise on the retirement of members of the 1995 section of the NHS Pension Scheme. The Trust is liable for a final pay control charge if a member receives an increase to pensionable pay in any of the three years prior to them retiring or transferring out of the scheme that is more than a specified amount.

The Trust has a contractually binding commitment to pay the corresponding amount on retirement to ensure that they are fully compensated. This provision is broadly equal to the commitment. NHS England will refund the payments and a corresponding asset is recognised in receivables (note 13.1).

£7,884k is included in the provisions of the NHS Litigation Authority as at 31 March 2022 in respect of the clinical negligence liabilities of the Trust (£10,976k at 31 March 2021).

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