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Treasury Deal Clears Way for NHS Job Cuts and Reintegration of NHS England

The Treasury will let the NHS overspend this year to cover one‑off redundancy costs.

Overview

  • HM Treasury approved a mechanism within the existing settlement, allowing the NHS to overspend this year to fund an estimated £1bn in redundancy payouts.
  • Wes Streeting authorised a 50% reduction in Integrated Care Board headcounts and the abolition of about 18,000 administrative posts, with savings pledged for frontline care.
  • NHS England set a voluntary redundancy application window of 1–14 December, with national sign‑off due 18 January and role reductions starting from mid‑March 2026.
  • Ministers confirmed NHS England will be brought back into the Department of Health and Social Care within two years.
  • Provider groups welcomed clarity after months of uncertainty for regional staff, while the British Medical Association warned about risks from losing planning and public health roles.