UK 'overpaid' Irish health service

The British government has “carelessly” overpaid hundreds of millions of pounds to the Irish health service, the Conservatives…

The British government has “carelessly” overpaid hundreds of millions of pounds to the Irish health service, the Conservatives claimed today.

The cash has been handed over as part of a long-standing arrangement to fund treatment for around 50,000 Irish pensioners who worked in the UK.

But the process is so “shambolic” that up to €200 million a year too much has been flowing out of NHS coffers, according to the Tories.

The issue emerged as Minister for Health Mary Harney gave evidence to the Dáil in December. She said the British government “reckoned they had paid us €150 million more than they should have” in 2007, and wanted to claw back the money.

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Ms Harney predicted that the payment level - which is based on national insurance contributions made by Irish citizens - would go down to €250 million annually in future.

Shadow health secretary Andrew Lansley said he suspected the overpayments could be up to €750 million over the past five years, from a total bill of €2 billion.

He demanded a parliamentary inquiry, insisting ministers were trying to “hide” the problem. Britiain’s Department of Health has insisted the Governments are in talks over the issue.

Earlier this week Minister for Finance Brian Lenihan announced a number of tax rises and spending cuts, including more than €61 million off the health service budget this year.

Mr Lansley said ministers in Westminster needed to take responsibility “for the painful impact the confusion is having on the already overstretched Irish health system”.

PA