Reading the reply from the hospital it seems that the surgery hasn't been cancelled due lack of money but rather the CCG has closed the waiting list to out of areas patients because its own local patients are being prioritised.
No, what its says is that her trust, Mid Essex Hospital Services NHS Trust (MEHT) has closed the waiting list for DIEP procedures:
"A spokesperson for the Mid and South Essex CCGs (Clinical Commissioning Groups) said: “We are sorry to hear of the difficulties this patient has experienced with her treatment. “The CCGs of Mid and South Essex continue to fund delayed DIEP reconstructive surgery for patients who had undergone a mastectomy as part of their cancer treatment. “The waiting list for this procedure at Mid Essex Hospital Services NHS Trust (MEHT) was growing and as a result patients were waiting too long. Therefore, it was agreed that no more patients would be added to the delayed DIEP waiting list at MEHT."
and that she is not able to be treated at other hospitals performing DIEP because they don't accept out of catchment area patients.
"Returning home dejected, Alison began looking into the possibility of having the procedure done on the NHS at another hospital. But the only other two she could go to were in Norfolk or Oxfordshire, and she would have to be a resident in those catchment areas."