Page 150 - Pharmacy Appeals 1/4/04 to 31/3/05

126 Financial statements

Explanatory note
Note 2.1 provides an analysis of the provision expense The prior year's incidents figures show the changes in
charged to the Statement of Net Comprehensive provisions that have been recognised in previous reporting
Expenditure in the reporting year. The cost of years. In 2021/22 this was an increase of £32.061 billion
claims arising from incidents occurring in 2021/22 across all schemes, which has been affected by the
totals £13.706 billion across all schemes. This change in the HM Treasury long term discount rates
compares to £8.449 billion in 2020/21. as described in the Finance report at pages 55 to 63.
The estimated cost of incidents arising from the clinical The approach taken to valuing the
activity in 2021/22 covered by the largest scheme, provision is shown in Note 7.2.
CNST, was £13.3 billion. This figure is materially higher
than the £7.9 billion reported in 2020/21 reflecting:

• the change in the HM Treasury long term
discount rates, which places a much higher
value on projected claims costs; and
• the assumption that clinical activity would have
increased in 2021/22 compared with 2020/21
where activity would have been impacted by the
pandemic. We estimate that the annual cost of
incidents would have been £8.7 billion without
the impact of the change in discount rates.

3. Operating income

Operating income 2021/22 2020/21
£000 £000
CNST contributions 2,458,741 2,243,740

LTPS contributions 56,937 56,956

PES contributions 9,007 8,071

Practitioner Performance Advice 935 759

Total 2,525,620 2,309,526