Glossary

Review of the MHHS 2021/22 costs – £4m to be returned to Suppliers in December

The MHHS Implementation Management Charge was set by the BSC Panel at its June meeting at £0.03847/Supplier Volume Allocation MSID, per month. This charge was initially calculated on the basis of the annual MHHS budget, however we committed at the June 2021 Panel meeting to review the charge later in the financial year once there was a better view of the costs likely to be incurred.

To that end we have been monitoring the likely spend within 2021/22 and presented analysis to the BSC Panel’s October meeting, recommending to the Panel that the rate should be revised to £0.02235 per SVA MSID per month. The Panel approved this new rate at their meeting.

What happens next? 

This revised rate will be retrospectively applied from April 2021, which means approximately £4m will be redistributed back to Suppliers in December 2021, with invoicing for the year concluding over the remaining 2021/22 months at the £0.02235 per SVA MSID per month.

Please note that this change to the MHHS Implementation Monthly Management Charge is cost phasing, as opposed to an indication that the cost of the programme has been reduced.  The MHHS Implementation Management Charge could increase for the next financial year (April 2022/23) in line with the needs of the programme.

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