Staff training programmes at Oxford's John Radcliffe Hospital have escaped cuts, despite a multi-million pound funding deficit, it emerged yesterday.

The Oxford Radcliffe Hospitals NHS Trust is facing a £33m deficit, and announced last month that 600 posts will have to go to reduce costs, including 225 in nursing and midwifery, although nursing redundancies could be avoided by a massive reduction in agency workers.

Health Secretary Patricia Hewitt told the Commons yesterday the net overall overspend in the NHS was £512m in 2005/6, but strategic health authorities underspent by £524m, partly by saving money on staff training.

Sir Ian Carruthers, interim chief executive of the NHS, admitted that SHAs had saved some of that money from their education and training budgets. But he added: "That does not necessarily mean that education and training is being reduced. It's about the way the programmes are managed."

The Oxford Radcliffe Hospitals NHS Trust is one of the largest teaching hospitals in the UK, responsible for four of the county's major hospitals.

Kevin McNamara, a spokesman for the Thames Valley Strategic Health Authority, said there had been no cuts in staff training in 2005/6.

"In terms of student nurse places, there has been no reduction in pre-registration places commissioned by TVHA in 2005/6," he added.

Debbie Pearman, a Royal College of Nursing spokesman for the John Radcliffe, said: "We are not aware of any cuts in staff training."