How can the NHS be put on a financially sustainable footing?
The Public Accounts Committee (PAC) holds an evidence session on the NHS’ financial sustainability at 3.30pm on Monday 25 November. The session follows the National Audit Office’s 2024 report on NHS financial management and sustainability.
Meeting details
The NAO found that, in 2023-24, the financial deficit in NHS England (NHSE) had more than doubled from the previous year, to £1.4bn. Despite the provision of additional funding of £4.5bn during 2023-24 by the Government, and an underspend by NHSE against its central budgets of £1.7bn, the NHS is finding it increasingly difficult to live within its means.
These financial pressures exist in the context of an increasing and ageing population in England, which is expected to grow to 61.9m by 2034 from its current size of 58.3m, according to Office for National Statistics (ONS) figures. Most of this growth stems from a predicted 2.3m increase in people aged 65 or over, who have a greater likelihood of health conditions in need of treatment.
A separate NAO report on the NHS’ Long-Term Workforce Plan noted an assumption that NHS workforce productivity (how much care a workforce delivers within the available funding) will grow by up to 2% a year to 2036-37. However, ONS figures show an average long-term productivity gain of only approximately 0.6% a year for the wider healthcare system between 1996-97 and 2018-19.
The Committee will likely challenge senior officials from the Department for Health and Social Care (DHSC), NHSE and HM Treasury on topics including:
- Key actions to improve day-to-day and long-term management of NHS funding;
- How to improve productivity and current assumptions of growth;
- Tackling rise in demand and resilience to future shocks;
- The longstanding lack of progress in shifting from treatment to prevention of ill health.