Time has come for a new financial settlement for the NHS and social care

31 October 2016


The chair of the health committee, Dr Sarah Wollaston, has written to the chancellor of the exchequerexpressing concern about the finances of the NHS. 

The letter, which has also been signed by other committee members, follows the oral evidence sessions on Department of Health and NHS finances, which was triggered by a letter from NHS Providers.

The letter asks three questions of the chancellor ahead of the autumn statement and expresses hope that he will meet the chair of the committee to discuss the government's response to the letter before the autumn statement is made.

Commenting on the letter, NHS Providers chief executive Chris Hopson said: 

“This clear-sighted analysis from the health committee cuts to the chase on the state of NHS finances. Put simply, the gap between what the NHS is being asked to deliver and the funding it has available is too big and is growing rapidly. The committee has identified what has long been troubling those who run our hospital, mental health, community and ambulance services – in the face of spiralling demand for care from an older population with more complex needs, there is a big risk that the NHS will not be able to maintain services at current levels, let alone improve them.

“The health committee’s analysis clearly questions the argument that the NHS is ‘getting what it asked for’ following the spending review in 2015. The government’s £10 billion increase is in reality closer to £4.5 billion, while the average amount we spend on health care for each person in this country will level-off in 2017-18 and will actually fall in 2018-19. We share the health committee’s concerns that short term pressures, combined with cuts to public health, social care and capital funding, risk overwhelming the NHS’ ability to provide the quality of care we all want when funding increases significantly tail off from 2017/18 onwards. This points to an inevitable conclusion – that we need a new financial settlement for both the NHS and social care system that places both on a more sustainable footing.

The gap between what the NHS is being asked to deliver and the funding it has available is too big and is growing rapidly

“In particular, the fragility of social care services is limiting the NHS’s ability to halt the year on year rise in the numbers of people attending A&E, as well as ensuring people are not delayed in hospital when they are medically fit to leave. We agree with the health committee that if there is extra funding available in the autumn statement then social care must be prioritised.  

“Against this backdrop, it is also hard to see how the transformation of care for patients and service users that we all want to see happen will be achieved. Although we support the vision of the 5YFV, we share the health committee’s concerns over how achievable this is within the timescales. This isn’t simply about calling for more money. We know that when the NHS has the time, resources and capacity it needs, it can deliver genuine transformation. It has done so in the past and will do again but, at the moment, it is being asked to deliver an impossible task.”

In early November, NHS Providers will publish its key recommendations for how the government can address the funding challenge facing the NHS and social care system. These were at the heart of the organisation’s written submission to the autumn statement earlier this month.