Commons Sense

House of Commons · Ministers' Questions

NHS: Private Finance Initiatives

Tuesday 24 February 2026 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • The health PFI programme delivered 126 new acute facilities and over 12 billion of investment in the NHS estate between 1992 and 2015.
  • Alder Hey children's hospital NHS foundation trust faces significant financial pressure due to high interest charges on its PFI deal, still owing 380 million by 2045.
  • The Department is working with Alder Hey to rectify financial issues and will not use the PFI model in future projects.

Topics (select to filter)

Questions & Answers

Q1 Ian Byrne Lab Liverpool West Derby
NHS
Context

The question arises from concerns about the financial burden placed on NHS trusts, particularly those facing significant pressure due to PFI deals. The issue has broader implications for the future use of such initiatives in healthcare.

Question

What assessment his Department has made of the potential impact of private finance initiatives on the NHS?

Answer from Karin Smyth

The health PFI programme between 1992 and 2015 delivered 126 new acute facilities for the NHS, and over £12 billion of investment in the estate. NHS PFI contracts are held by individual trusts, and the National Infrastructure and Service Transformation Authority publishes annual data on them, including the costs of all those PFI projects. The last PFI contract was signed in 2015. We are not bringing back PFI; we are bringing forward a new public-private partnership model that will draw on lessons learned from the past, to ensure that we deliver the commitments of our 10-year plan.

Partly answered

Not addressed: Specific impacts and financial burdens were acknowledged but not quantified or committed to in detail

How: Lessons Learned, New Ppp Model

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email
Q2 Ian Byrne Lab Liverpool West Derby
NHS
Context

Alder Hey children's hospital NHS foundation trust faces significant financial pressure due to a private finance initiative deal. Over 50% of its total PFI payment is going towards interest charges, with the hospital owing £380 million by 2045 for an initial investment of £189 million.

Question

Alder Hey children's hospital NHS foundation trust in my constituency faces significant financial pressure due to its private finance initiative deal. That is because over 50% of its total PFI payment is going towards interest charges, with Alder Hey still owing £380 million by 2045 for the PFI investment of £189 million. That is nearly £200 million being drained out of Alder Hey over the next two decades, because of the now discredited PFI system. That money should be spent on making sick children better. What assessment has the Department made of the potential impacts of the use of PFI to fund the recently announced neighbourhood health centres?

Answer from Karin Smyth

My hon. Friend highlights an important example, where something is clearly not going well. The Department is working with the team at Alder Hey to help rectify some of those problems. That is why we will not be using that PFI model in future. We have learned those lessons and we will take forward a new PPP model for our neighbourhood health service that will transform care for people in his constituency and across the country.

Partly answered

Not addressed: Specific impacts of using PFI for new projects were not quantified or committed to

How: New Ppp Model, Rectifying Problems

Was this summary accurate? Tell us

How accurate was this summary? (1 = poor, 5 = spot on)

Get updates like this by email