MILLIONS of pounds worth of debts will be written off for Herefordshire's Wye Valley NHS Trust as part of government plans to help the NHS during the coronavirus crisis.

Wye Valley NHS Trust's historic debts totalling more than £192 million will be scrapped as part of the £13.4 billion debt write off announced by the Health Secretary last week.

From the start of this month, £3.4 billion of debt of NHS debt across 23 NHS Trusts in the Midlands will be wiped to take extra pressure off the health service.

This is part of a package of major reforms to the NHS financial system, which will begin from the start of the new financial year.

The changes aim to provide much needed financial support during this unprecedented viral pandemic, as well as laying secure foundations for the longer-term commitments set out last year to support the NHS to become more financially sustainable.

Health Secretary Matt Hancock said: “As we tackle this crisis, nobody in our health service should be distracted by their hospital’s past finances.

“Today I’m pleased to confirm the value of this package for the Midlands. This £3.4 billion debt write off will wipe the slate clean and allow NHS hospitals to plan for the future and invest in vital services.”

NHS chief executive, Sir Simon Stevens, said: “We've advocated for and support this pragmatic move which will put NHS hospitals, mental health and community services in a stronger position - not just to respond to the immediate challenges of the global coronavirus pandemic, but also in the years ahead to deliver widespread improvements set out in our NHS Long Term Plan."

Under the new rules set out in a letter to all NHS Trusts, should hospitals need extra cash this will be given with equity, rather than needing to borrow from the government and repay a loan.