A £250k fund has been ringfenced from hospital reserves to pay junior doctors.

Government changes to junior doctors’ contracts have led to a higher than expected wage bill, Great Western Hospital executives warned.

Responding to the rise, they slammed politicians’ earlier promises that the controversial contract changes would be “cost-neutral”.

Executives heard that contract changes were in part to blame for a £290,000 wage bill rise in October.

Karen Johnson, GWH’s finance director, told a meeting of the trust’s board: “As we all know the junior doctors contract was renegotiated this year and we’re starting to see the impact of that financially. That’s causing a strain to the organisation.

“That’s not uncommon when you look at other organisations around the country. They’re all experiencing similar pressure.”

In a finance report presented to the board, the junior doctor wage bill just for wards and in operating theatres jumped by £71,000 in October.

Accountants cited as the cause an “increase in the number of junior doctors on current rotation”.

Another department faced a £60,000 bill, partly blamed on “increased costs for newly appointed doctors”.

The hospital has ringfenced £250,000 from their reserves in order to cover the higher than expected junior doctors’ wage bill.

Hospital directors expressed frustration about the lack of cash support from government following the contract change.

GWH’s medical director Guy Rooney joked: “They said it was going to be cost neutral when I spoke to someone high up – and was shocked when everyone said it’s not.

“It sounds like [there will be] a national audit report in about two years time, saying that it was handled very badly and it wasn’t cost effective.”

Finance director Karen Johnson added: “I never hear of any trusts saying it’s costing them less to have junior doctors. They [NHS England and NHS Improvement] may reflect it in the tariff for the next financial year, but I suspect not.”

Oonagh Fitzgerald, GWH human resources director, later told the Adver: “As part of our financial planning process, we regularly look out for issues that could result in any unexpected costs for the Trust.

“Although there was an assumption the new contract for junior doctors would be cost-neutral, implementing the revised terms and conditions have meant we have had to update our financial predictions for the current year.

“In a fluid environment like the NHS, new rules and regulations often mean plans have to be adapted. Our job is to ensure any new national rules can be introduced in the most effective way possible.”

The department for health, which oversees doctor contracts, was approached for comment.