NHS: Finance

(asked on 22nd April 2025) - View Source

Question to the Department of Health and Social Care:

To ask His Majesty's Government, further to the Written Answer by Baroness Merron on 18 March (HL5406), what assessment, if any, they have made of the impact of the 2025–26 Payment Scheme and Standard Contract on (1) the willingness of ophthalmology service providers to build new specialist eye hospitals in England, and (2) the ability and willingness of other independent providers of NHS funded care in England to build new health infrastructure to meet the demands of the NHS.


Answered by
Baroness Merron Portrait
Baroness Merron
Parliamentary Under-Secretary (Department of Health and Social Care)
This question was answered on 9th May 2025

No specific assessment has been made of the impact the 2025/26 Payment Scheme and Standard Contract will have on the willingness of ophthalmology service providers to build new specialist eye hospitals in England, or the ability and willingness of other independent providers of National Health Service funded care in England to build new health infrastructure. It is for independent sector providers to determine the most appropriate investment decisions for their businesses.

However, decisions around the annual Payment Scheme and updates to the Standard Contract are subject to consultation, with a legal duty to consult on the Payment Scheme and Standard Contract every year. This includes consultation with independent providers.

The consultation on the Payment Scheme proposed requiring commissioners to set a payment limit for elective services, and all services paid for on an activity basis, based on the value of planned levels of activity. Providers would not be paid for activity above this limit. Following consideration of consultation feedback, this proposal has not been implemented. As in previous years, providers will be paid prices for all activity delivered, subject to any activity management restrictions contractually applied by commissioners. A consultation on further changes to the Standard Contract closed on 28 April 2025, and NHS England is reflecting on the feedback received before publishing the final contract.

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