Joined House of Lords: 28th May 2025
Speeches made during Parliamentary debates are recorded in Hansard. For ease of browsing we have grouped debates into individual, departmental and legislative categories.
These initiatives were driven by Baroness Shawcross-Wolfson, and are more likely to reflect personal policy preferences.
Baroness Shawcross-Wolfson has not introduced any legislation before Parliament
Baroness Shawcross-Wolfson has not co-sponsored any Bills in the current parliamentary sitting
The Department for Health and Social Care answered the question for written answer (HL12852) on 26th January 2026.
I refer the Noble Lady to my answer to HL13762.:
Question:
To ask His Majesty's Government, further to the Written Answer by Baroness Anderson of Stoke-on-Trent on 19 January (HL13276), when the arm's length bodies (ALB) review will be completed; and whether its findings will be published.
Answer:
The review is ongoing. Outcomes will be communicated in due course.
Departments and agencies have delegated authority to determine their own practices and procedures for the recruitment of staff to the Civil Service, including the Senior Civil Service (SCS), as outlined in the Civil Service Management Code.
The Government People Group are collaborating with dedicated SCS Recruitment leads from the core Government departments to support them in sharing best practice and making relevant changes to their hiring practices, in line with the ambition set out in the Chief Secretary to the Prime Ministers’ speech of 20 January 2026.
Our approach to hiring for the Senior Civil Service (SCS) is changing to place greater value on frontline delivery, innovation, and private sector experience. Departments and agencies have authority to determine their practices and procedures for the recruitment of staff to the Civil Service, including the Senior Civil Service.
In accordance with the Civil Service Recruitment Principles, departments must provide all potential applicants with information about the nature and level of each role, criteria against which they will be assessed, and details of the selection process and the total remuneration available. However, there are no plans to publish internal-facing guidance to the public domain, as it constitutes HR-to-HR guidance designed for departments to integrate into their respective policies and processes.
Performance arrangements for members of the Senior Civil Service stem from a centrally set performance management framework, which makes clear that the objectives should be linked directly to the objectives of the department and minister they serve.
Underperformance is managed under the same framework, and triggered when individuals fail to meet the minimum standards or receive low performance ratings, with sustained poor performance escalated to a separate formal policy aligned with ACAS best practice.
Number 10 and the Cabinet Office are continuing to work together and with departments to consider taskforces across the Prime Minister’s priorities.
His Majesty’s Government is establishing the National School of Government and Public Services to strengthen the professional capability of the Civil Service.
The National School will serve over half a million civil servants. It will provide hundreds of thousands of hours of training as well as on-demand online learning. Training will be provided by a combination of civil service trainers, senior civil servants, and external providers and experts, including leading academic institutions.
We currently publish details of civil service training and will continue to do so as we expand the curriculum, focusing on priority skills including digital and AI. Further details of the proposed training curriculum will be published when the National School launches later in 2026.
The delivery objectives of all Senior Civil Servants should be linked to the objectives of the department and minister they serve. The framework is regularly reviewed and updated in alignment with Government priorities.
The Spending Review 2025 set each department’s yearly administration budget and committed to reduce them by 16% in total and in real terms by 2029-30. The Spending Review details the planned administration Budgets for each department for each year between 2025-26 and 2029-30.
The reductions will be delivered through savings and efficiencies, supported by the £150 million announced at Spring Statement 2025 to help deliver employee exit schemes, and with greater embedding of a cost-conscious culture across Whitehall, including reducing travel costs.
The Civil Service is committed to publishing a Civil Service Strategic Workforce Plan in the first part of this year once departments have finalised their workforce plans as per the financial settlements that were agreed with HMT in the Spending Review and the priorities set by Ministers, including those set out in the Autumn Budget.
The Civil Service Strategic Workforce Plan will set out how the Civil Service workforce will meet the Government’s policies of reducing back office costs by 16% by 2030, halving consultancy spend and targeting spending on front line services.
The review is ongoing. Outcomes will be communicated in due course.
All government consultations are published on GOV.UK. Individual government departments are responsible for the consultations they lead on.
This Government was elected on a mandate of change. In order to deliver the promises we made in our manifesto, the following arms length bodies have been legislated for, launched or announced:
Great British Energy (DESNZ)
National Wealth Fund (HM Treasury)
Skills England (DWP)
Independent Football Regulator (DCMS)
Ethics and Integrity Commission (CO)
Single Construction Regulator (MHCLG)
Local Audit Office (MHCLG)
Government Commercial Agency (CO)
Great British Railways (DfT)
Fair Work Agency (DBT)
The reference in paragraph 2.84 of the November 2025 Budget refers to the arm's length body review that was launched on 6 April 2025. That review is ongoing. The decision to close NHS England, announced on 13 March 2025, predates the launch of the arm's length bodies (ALB) review.
Departments are developing plans on the size and shape of their workforces as per the financial settlements that were agreed with HMT in the Spending Review and the priorities set by Ministers, including those set out in the Autumn Budget. These plans will take a whole workforce approach based on the cost of civil servants, Contingent Labour, Consultancy and Managed Services.
At an overall Civil Service level, we have set out plans to reduce back office costs by 16% over the next five years, delivering savings of over £2.2 billion a year by 2030 and targeting spending on front line services. The Civil Service is committed to publishing a Civil Service Strategic Workforce Plan this year, which will confirm more details about the plans for our workforce.
Please see the table below for 2024, 2025 and latest available figures on Civil Service employment sourced from ONS Public Sector Employment Statistics.
| 31 March 2024 | 31 March 2025 | 30 Sept 2025* |
Full-time equivalent | 510,720 | 516,470 | 520,440 |
Headcount | 543,530 | 550,150 | 554,315 |
*latest available
Each department will take a decision on its future size and shape as per the financial settlements that were agreed with HM Treasury in the Spending Review. These plans will take a whole workforce approach based on the cost of civil servants, Contingent Labour, Consultancy and Managed Services, and will be finalised through the business planning process that is currently underway.
The Arm's Length Body Review, formally launched on 7th April 2025 is ongoing, its outcomes will be communicated in due course. Some changes have already been announced such as the closure of NHS England to reduce bureaucracy, make savings and empower NHS staff to deliver better care for patients. Additionally, closures of some ALBs such as the UK Space Agency and its repatriation into DSIT are already underway..
As announced on 6th April 2025, the Government is conducting a full-scale review of arm's-length bodies in order to reduce the duplication of work by public bodies, improve efficiency, reduce unnecessary costs, and improve transparency. This review is ongoing, but some changes have already been announced such as the closure of NHS England to reduce bureaucracy, make savings and empower NHS staff to deliver better care for patients.
The Government has established a baseline for the administrative burden of regulation on businesses of £22.4bn a year, and a resulting £5.6bn target. As set out in the technical annex to policy paper ‘A new approach to ensure regulators and regulation support growth’ (21st October 2025), these estimates apply from the start of April 2025 and reflect all UK government regulation at the time, including since July 2024.
Where gross administrative burdens are added after April 2025, savings will be found in other areas, so the net administrative burden is reduced by £5.6bn by the end of this Parliament.
Government is making progress to reduce the administrative burden of regulation on businesses by 25% by the end of this Parliament.
As set out in the October Regulation Action Plan progress update, we have identified £1.5bn in gross administrative savings through measures like the Planning and Infrastructure Bill which is accelerating the delivery of 1.5m new homes and critical infrastructure, making annual savings of £272m; modernising corporate reporting requirements, making annual savings of £230m, and; providing access to data and speeding up work to operate and repair pipes and cables by establishing the National Underground Asset Register, saving £185m annually.
The Government has published a comprehensive Regulation Action Plan that sets out our plans to reform the regulatory system to unlock growth, boost innovation and reduce burdens on businesses across key sectors.
One of the key commitments in the Action Plan is the target to cut the administrative burden of regulation on business by 25%, or £5.6bn, by the end of the Parliament. This pledge will save businesses time and money and help create a regulatory environment that is targeted, proportionate, transparent and agile enough to support economic growth.
The Government is delivering a network of 50 Young Futures Hubs by March 2029. This is a cross-government priority, coordinated with the Department for Education and the Department of Health and Social Care.
While local authorities will decide on precise locations based on community needs, we expect co-location to be a key consideration where it improves accessibility and strengthens local support for young people.
Eight early adopters have been announced. The early adopter phase will look at how Young Futures Hubs interact with existing services, including Family Hubs.
Through the department’s Childcare and Early Education Review, we will look at how to improve access to early education and care, making the system simpler for families and delivering a coherent local offer. The Review will focus on improving outcomes for all children, including those from disadvantaged backgrounds, and on helping parents participate in the labour market.
Alongside this, the Early Years Funding Consultation is considering how funding is distributed nationally and locally to ensure it remains fair, reflects delivery costs, and supports areas with higher levels of need. We also work closely with local authorities to monitor sufficiency and understand the barriers to delivering funded places.
On workforce, we are expanding funded Early Years Initial Teacher Training places, introducing financial incentives in disadvantaged areas, and will be consulting on routes and professional status to support a strong, sustainable profession.
Through the department’s Childcare and Early Education Review, we will look at how to improve access to early education and care, making the system simpler for families and delivering a coherent local offer. The Review will focus on improving outcomes for all children, including those from disadvantaged backgrounds, and on helping parents participate in the labour market.
Alongside this, the Early Years Funding Consultation is considering how funding is distributed nationally and locally to ensure it remains fair, reflects delivery costs, and supports areas with higher levels of need. We also work closely with local authorities to monitor sufficiency and understand the barriers to delivering funded places.
On workforce, we are expanding funded Early Years Initial Teacher Training places, introducing financial incentives in disadvantaged areas, and will be consulting on routes and professional status to support a strong, sustainable profession.
Experts at Hand will be delivered through a blend of existing specialist capacity and new staff brought in over time, ensuring the expertise available grows sustainably as the offer develops.
We recently announced £26 million investment to train at least 200 educational psychologists per year, starting their training in 2026 and 2027, followed by further investment from 2028 to train even larger cohorts, subject to a future spending review. This builds on £31 million already being invested since 2023 to train around 200 educational psychologists per year.
The educational psychology doctorate is a three-year course and those who began their training in 2023 will graduate and enter the workforce in 2026/27. Together, these investments will result in approximately 200 trained educational psychologists graduating each year, in 2026/27, 2027/28, 2028/29, and 2029/30 respectively.
We also announced an investment of over £15 million in speech and language therapists (SaLTs). This is to upskill more SaLT support workers and to establish new SaLT advanced practitioners to ensure more therapists and support workers are working with education settings to support additional children and young people. We will also promote the Level 6 SaLT degree apprenticeship to boost the pipeline.
In every year of this Parliament, core funding for schools and special educational needs and disabilities is expected to increase, subject to future spending reviews. The government is committed to prioritising early intervention and is making a major increase in investment, with £4 billion over the three years of the Spending Review. This will reverse the trend of late intervention and escalation in needs.
Within this total, the Inclusive Mainstream Fund will provide over £500 million per financial year, over three years, to schools, colleges and early years settings to develop and embed improved inclusion practice. On Wednesday 25 March, the department published methodology documents explaining how funding will be allocated for the Inclusive Mainstream Fund. Details on the funding for schools and mainstream 16-19 provision are available here: https://www.gov.uk/government/publications/inclusive-mainstream-fund-2026-to-2027. Details on the Inclusive Early Years Fund are available here: https://www.gov.uk/government/publications/inclusive-early-years-fund-2026-to-2027. Funding from 2029 to 2030 onwards is subject to future spending reviews.
Also on 25 March, we announced further details on the allocation of £860 million of high needs capital funding as part of the landmark £3.7 billion announced to deliver 60,000 more specialist places. This funding will drive a transformative expansion of inclusion bases across the country, as well as adaptations to improve the inclusivity and accessibility of mainstream settings as well as supporting special school place creation where needed.
As set out in special educational needs and disabilities reform: putting children and young people first, the breakdown of our £4bn investment package, over the next three years, is as follows:
The government will publish breakdowns by programme area for this coming financial year as part of publishing allocations in the coming months.
The £4 billion in funding over the spending review period (2026/27, 2027/28 and 2028/29) is newly allocated funding from existing departmental budgets. This investment is additional to the core funding allocations for 2026/27 for early years, schools and post-16 funding that have already been announced.
The department confirmed an additional £3.5 billion of new funding for the special educational needs and disabilities (SEND) system in 2028/29, to support reforms to improve outcomes and experiences for children, young people and their families, as outlined in ‘SEND reform: putting children and young people first’.
The Childcare Review is currently in the early stages of cross government discussions to consider how the early education and childcare alongside family support works for families and children. We will also be working with stakeholders throughout the year to gather insights and build our evidence base. We aim to conclude the Review later this year.
As announced in the Autumn Budget 2025, the department will lead a review of childcare provision. This review aims to simplify the system for providers and families, improving access and strengthening the impact of government support. The review is expected to take place in 2026, and we will share more information in due course.
There have been steady increases over the last two decades in the number of children in receipt of Disability Living Allowance (DLAc), from 230,000 in May 2002 to 840,000 in May 2025, excluding Scotland claims. These increases are driven primarily by increases in the number of claimants with learning difficulties (including Autism Spectrum Disorder), hyperkinetic syndrome (including Attention Deficit Hyperactivity Disorder) and behavioural disorders which have increased from 48% of the caseload in May 2002 to 83% in May 2025.
Work has commenced on the Keep Britain Working Vanguard Phase following publication of the review’s final report in November. We are working with Sir Charlie Mayfield, Vanguard employers and regions to mobilise and design this next phase of work and establish effective ways of working. The vanguards will play a pivotal role in shaping how health issues and disabilities are managed in the workplace, building an evidence base and understanding of what works through effective partnership with employers.
As part of the Vanguard Phase, Sir Charlie Mayfield has agreed to establish and lead a Vanguard Taskforce/advisory board in partnership with Department for Work and Pensions, Department for Business and Trade, and Department of Health and Social Care. The Vanguard Taskforce will bring together a group of external experts from various sectors and organisations to provide external advice, and guidance to steer the Keep Britain Working Vanguard Phase. We are currently considering the Terms of Reference and potential membership of the taskforce.
The Workplace Health Intelligence Unit (WHIU) will serve as the central hub for delivery of the whole Vanguard Phase and to drive on-going work. We are currently working to establish the Intelligence Unit within Government and considering options for its design and details of its function. A comprehensive governance framework, incorporating the taskforce, will be established to ensure strategic oversight and accountability of the Unit as it is set up and developed.
Further information on the shape and remit of the Vanguard Taskforce and Workplace Health Intelligence Unit is expected in Spring 2026.
This Government values the input of disabled people and people with health conditions, their representative organisations and people that support them. The Pathways to Work Green Paper launched a consultation which has now concluded. We are considering responses to the consultation.
We also have recently concluded the Access to Work Collaboration Committees, in which we engaged with a range of stakeholders, including disabled people’s organisation representatives and lived experience users, to provide discussion, experience, and challenge to the design of the future Access to Work Scheme.
Whilst the committees have now ended, we will seek opportunity to engage with stakeholders as we move forward with policy development, recognising the value of their input and expertise.
The findings from the consultation and Collaboration Committees will inform the chosen future direction of Access to Work. Once this is established we will set out our plans working closely with stakeholders to ensure an appropriate transition.
On 11th July 2025, we announced a WorkWell Primary Care Innovation Fund, which offered a portion of £1.5 million of single year funding to each of the fifteen WorkWell pilot sites to test innovative approaches to the fit note within primary care.
The funding is supporting local areas to boost capacity in primary care to provide better work and health support via the fit note process, with the longer term aims of reducing pressure on GPs and improving patients’ work and health outcomes.
Each of the 15 WorkWell Integrated Care Boards has received up to £100,000, with interventions running from October 2025 to March 2026. The locations of the sites are:
Birmingham and Solihull,
Black Country,
Bristol North Somerset and South Gloucestershire (BNSSG),
Cambridgeshire,
Cornwall and Isles of Scilly,
Coventry,
Frimley,
Greater Manchester,
Herefordshire,
Lancashire and South Cumbria,
Leicester, Leicestershire and Rutland (LLR),
North Central London,
North West London,
South Yorkshire, and
Surrey Heartlands.
One of the key aims of the funding is to build the evidence base for how the fit note process within primary care can be improved, and findings will inform future policy development. Most sites are using the funding to test new or additional roles within Primary Care Networks, including social prescribers, work and health coaches, or physiotherapists, to either issue the fit note instead of the GP or provide wraparound work and health support to the fit note recipient.
However, we know that we need to go further. The Keep Britain Working Review was clear that the fit note is ‘not working as intended’ and recommended that we test alternative approaches to the fit note, working with GPs and health services to explore improvements and replacements. We are currently considering how to respond to the Review’s recommendations on the fit note, and we will bring forward more information in due course.
Work has commenced on the Keep Britain Working Vanguard Phase following publication of the review’s final report in November. We are working with Sir Charlie Mayfield, Vanguard employers and regions to mobilise and design this next phase of work and establish effective ways of working. The vanguards will play a pivotal role in shaping how health issues and disabilities are managed in the workplace, building an evidence base and understanding of what works through effective partnership with employers.
As part of the Vanguard Phase, Sir Charlie Mayfield has agreed to establish and lead a Vanguard Taskforce/advisory board in partnership with Department for Work and Pensions, Department for Business and Trade, and Department of Health and Social Care. The Vanguard Taskforce will bring together a group of external experts from various sectors and organisations to provide external advice, and guidance to steer the Keep Britain Working Vanguard Phase. We are currently considering the Terms of Reference and potential membership of the taskforce.
The Workplace Health Intelligence Unit (WHIU) will serve as the central hub for delivery of the whole Vanguard Phase and to drive on-going work. We are currently working to establish the Intelligence Unit within Government and considering options for its design and details of its function. A comprehensive governance framework, incorporating the taskforce, will be established to ensure strategic oversight and accountability of the Unit as it is set up and developed.
Further information on the shape and remit of the Vanguard Taskforce and Workplace Health Intelligence Unit is expected in Spring 2026.
We recognise that some young people are struggling to find their place in work, education or training.
The report into young people and work will seek to:
The Right Honourable Alan Milburn will author the report and will be supported by a range of voices with expertise from the labour market and health spheres.
Primary legislation is required to enable the transfer of NHS England’s functions, powers and responsibilities formally to the Department or out to the wider system. Primary legislation is subject to the will of Parliament, and the Government welcomes parliamentary scrutiny of these provisions. The bill will be introduced in Parliament when parliamentary time allows.
Currently, NHS England is responsible for publishing the NHS Payment Scheme, with the relevant legislation set out in schedule 10 of the 2022 Health and Care Act. Under NHS England’s Scheme of Delegation, responsibility for approving the NHS Payment Scheme rests with the Chief Executive Officer of NHS England, delegated to the Chief Financial Officer of NHS England.
During development of the NHS Payment Scheme, NHS England engages with a wide range of stakeholders, including the Department. The 2026/27 NHS Payment Scheme was published on 26 March 2026 and incorporates a number of changes following consultation.
A decision on whether the National Audit Office will be asked to make an assessment of the 10 Year Workforce Plan has not been made. The plan’s modelling will, however, be subject to external scrutiny. The plan will be published in spring 2026.
It is important that there is stability in the medicines regulatory and access landscape, and there should be a high bar for making changes to the cost-effectiveness threshold. It is the Government’s intention, therefore, that the power to set the cost-effectiveness threshold would be used rarely.
The full responsibility for developing and setting the National Tariff, which is a set of rules, prices, and guidance that determine how providers of National Health Service funded healthcare are paid for the services they provide, was given to NHS England through the Health and Social Care Act 2012. The Health and Care Act 2022 confirmed this responsibility and renamed the ‘National Tariff’ to the ‘NHS Payment Scheme’. The legislation relating to the NHS Payment Scheme is set out in schedule 10 of the 2022 Act.
Under NHS England’s ‘Scheme of Delegation’, responsibility for approving the NHS Payment Scheme rests with the Chief Executive Officer of NHS England, delated to the Chief Financial Officer of NHS England. Ministerial agreement of the consultation is not currently a requirement of the regulations set out in the act.
NHS England will continue to work with policy teams at the Department and wider stakeholders to further develop currencies and consider appropriate payment options for attention deficit hyperactivity disorder and autism, in line with the overall direction set by ministers.
NHS England was advised by a number of clinicians, policy professionals, commissioners, and providers of attention deficit hyperactivity disorder (ADHD) and autism diagnostic assessment services prior to the publication of the NHS Payment Scheme consultation. All National Health Service providers, commissioners, and independent sector providers of NHS-funded autism and ADHD services were invited to an NHS Payment Scheme engagement session in September.
The statutory consultation for the NHS Payment Scheme 2026/27, which closed on 16 December 2025, provided an opportunity for all stakeholders to review the consultation guidance and provide comments and feedback. This consultation was open to the public, but NHS England specifically reached out to all NHS providers, commissioners, and independent sector providers of NHS-funded autism diagnostic assessment services and ADHD services to ensure they were aware and were able to respond to the NHS Payment Scheme consultation.
NHS England are currently reviewing this feedback to inform the final 2026/27 Payment Scheme.
The National Institute for Health and Care Excellence (NICE) currently assesses value for money for the National Health Service by applying a standard cost-effectiveness range of £20,000 to £30,000 per quality adjusted life year (QALY) gained over and above current treatments. As part of the landmark pharmaceuticals trade deal with the United States of America, it has been agreed that the cost-effectiveness threshold will be increased to £25,000 to £35,000 per QALY.
My Rt Hon. Friend, the Secretary of State for Health and Social Care, does not currently have the legal power to direct NICE to amend the cost-effectiveness threshold used in its technology appraisal or highly specialised technology programmes. The Government has therefore proceeded to amend the NICE regulations, to give ministers a limited power of direction to set the core cost-effectiveness threshold that NICE uses in the development of guidance, and remove the requirement for NICE to consult on methods changes where these result from a ministerial direction. The regulation change has been made by a statutory instrument which was laid before Parliament on 3 March 2026 and, subject to the will of Parliament, will come into force on 24 March 2026. In line with the United Kingdom-United States’ deal, NICE will implement the cost-effectiveness threshold increase in April 2026, following a direction from my Rt Hon. Friend, the Secretary of State for Health and Social Care.
There are currently two appraisals paused, at the request of the company, until the National Institute for Health and Care Excellence (NICE) has the power to apply the new cost-effectiveness threshold:
NICE anticipates that its cost-effectiveness threshold will increase in April 2026 and will provide a further update to stakeholders at that time.
The Government has accepted the NHS Pay Review Body (NHSPRB) recommendation for a 2026/27 headline pay award, for all National Health Service staff on Agenda for Change (AfC), of a 3.3% pay rise effective from April 2026. We hugely appreciate the work of so many talented staff across the NHS. Accepting the recommendation gives NHS staff on AfC a deserved real terms pay rise.
The additional pressure above 2.5% affordability will be managed by the Department and the arms length bodies, including NHS England’s central budgets, but will not be paid for by cutting frontline services or an additional efficiency ask of integrated care boards and providers.
At the 2024 Autumn Statement and in our NHSPRB evidence, the Government reaffirmed its commitment to a 2% annual productivity growth target for the NHS and productivity is currently ahead of this target at 2.8% for the first seven months in this financial year. In 2025/26, systems have planned £11.1 billion of efficiencies and savings, or 7.1% of the total allocation. The planned efficiency and savings for the 2026/27 financial year will be finalised as part of the normal planning process that is currently underway.
Both efficiency and productivity performance is monitored on a monthly basis as part of our routine financial management to ensure the NHS lives within its budget.
The Government has accepted the NHS Pay Review Body (NHSPRB) recommendation for a 2026/27 headline pay award, for all National Health Service staff on Agenda for Change (AfC), of a 3.3% pay rise effective from April 2026. We hugely appreciate the work of so many talented staff across the NHS. Accepting the recommendation gives NHS staff on AfC a deserved real terms pay rise.
The additional pressure above 2.5% affordability will be managed by the Department and the arms length bodies, including NHS England’s central budgets, but will not be paid for by cutting frontline services or an additional efficiency ask of integrated care boards and providers.
At the 2024 Autumn Statement and in our NHSPRB evidence, the Government reaffirmed its commitment to a 2% annual productivity growth target for the NHS and productivity is currently ahead of this target at 2.8% for the first seven months in this financial year. In 2025/26, systems have planned £11.1 billion of efficiencies and savings, or 7.1% of the total allocation. The planned efficiency and savings for the 2026/27 financial year will be finalised as part of the normal planning process that is currently underway.
Both efficiency and productivity performance is monitored on a monthly basis as part of our routine financial management to ensure the NHS lives within its budget.
At the 2024 Autumn Statement, the Government reaffirmed its commitment to a 2% annual productivity growth target for the National Health Service. This is a stretching but essential ambition to ensure the NHS can meet rising demand within a tight financial settlement and return to pre-pandemic productivity levels. Detail on this was provided as part of the pay review body written evidence to give context to the wider NHS England financial position against which decisions are set.
Currently NHS productivity is running ahead of the 2% target, and increased by 2.8% in the first seven months of this financial year. This builds on the 2.7% growth between the 2024/25 and 2023/24 financial years. Consequently, we remain confident in delivering the 2% target.
The pay review body evidence did not set an explicit efficiency target. In practice, efficiency savings as a percentage run well ahead of 2% because they including non-recurrent savings and technical efficiencies, for instance reductions in agency costs, that are outside of productivity calculations. In 2024/25, NHS systems planned what was then the most ambitious efficiency and savings measures to date, targeting £9.3 billion, the equivalent to 6.1% of their total allocation. In 2025/26, systems have planned £11.1 billion of efficiencies and savings, 7.1% of the total allocation. NHS England will finalise planned efficiency and savings for the 2026/27 financial year as part of the normal planning process that is currently underway. Efficiencies are delivered throughout the course of the financial year, rather than all upfront at the start of the year.