Question to the Department of Health and Social Care:

To ask His Majesty's Government what estimate they have made of the cash value of the productivity and efficiency savings to be made by NHS England, integrated care boards and NHS providers in order to fund the NHS Agenda for Change staff pay award 2026–27.

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.