NHS Funding Plan

Department of Health and Social Care| June 2018 | Prime Minister sets out 5-year NHS funding plan

The NHS will receive increased funding of £20.5bn in real terms per year by the end of the 5 years compared to today – an average 3.4% per year overall – in a move to secure the future of the health service as it approaches its 70th birthday, the Prime Minister announced today.


This long-term funding commitment means the NHS has the financial security to develop a 10-year plan. The plan will be developed by the NHS, working closely with government and be published later this year. The priorities include:

  • getting back on the path to delivering agreed performance standards – locking in and further building on the recent progress made in the safety and quality of care
  • transforming cancer care so that patient outcomes move towards the very best in Europe
  • better access to mental health services, to help achieve the government’s commitment to parity of esteem between mental and physical health
  • better integration of health and social care, so that care does not suffer when patients are moved between systems
  • focusing on the prevention of ill-health, so people live longer, healthier lives

It will be essential that every pound in the NHS budget is spent wisely. The government will set the NHS 5 financial tests to show how the NHS will do its part to put the service onto a more sustainable footing:

  • improving productivity and efficiency
  • eliminating provider deficits
  • reducing unwarranted variation in the system so people get the consistently high standards of care wherever they live
  • getting much better at managing demand effectively
  • making better use of capital investment

(Source: Department of Health and Social Care)

The full press release is available from the DHSC 

Related: Jeremy Hunt’s statement to Parliament here


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