Wes Streeting has received approval to cut 18,000 NHS managers, emphasizing that his focus is not on creating jobs. The Health Secretary has been granted permission by the Treasury to restructure NHS England and regional NHS centers by reducing back office managers and administrative staff. This move is expected to save £1 billion annually by the end of the current Parliament, although it will initially incur £1 billion in upfront costs for items like redundancy payments.
Initially concerned about a potential £1 billion financial gap this year, NHS leaders reached an agreement with Chancellor Rachel Reeves to postpone payment obligations. The Department of Health and Social Care (DHSC) will be allowed to exceed its budget by approximately £1 billion this fiscal year, with the requirement to repay the amount through future savings, leading to reduced funding in 2026/27.
Streeting highlighted that the saved funds will be redirected towards frontline NHS services, ensuring efficient allocation of resources. He emphasized the importance of optimizing spending and reallocating resources to essential functions within the healthcare system. The government aims to streamline integrated care boards (ICBs) by cutting around 12,500 out of 25,000 staff due to perceived overstaffing in back office roles over the past decade.
The government plans to reduce the headcount by 50% across NHS England and the Department of Health, with 18,000 administrative staff and managers, including those on ICBs, facing cuts. The reforms are expected to eliminate unnecessary bureaucracy and generate £1 billion annually to enhance patient services. The savings from reduced bureaucracy costs could fund an additional 116,000 hip and knee operations.
Chancellor Rachel Reeves is anticipated to reveal further healthcare-related announcements in the upcoming Budget on November 26. Streeting reiterated the feedback from NHS staff regarding excessive layers of management and bureaucracy, emphasizing the prioritization of frontline services.
Streeting’s address at the NHS Providers conference in Manchester conveyed optimism about the healthcare system’s progress, citing improvements in reducing waiting lists and fulfilling public commitments. He acknowledged the ongoing challenges faced by individuals struggling to access medical services promptly and stressed the need for continued efforts to enhance healthcare delivery.
