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Treasury Deal Clears Way for NHS to Cut 18,000 Administrative Jobs

The health service will be allowed to overspend this year to fund redundancy payouts, with savings intended to flow to frontline care.

Overview

  • Health Secretary Wes Streeting told NHS leaders the redundancy programme is proceeding, ending months of uncertainty over funding.
  • Integrated Care Boards have been authorised to reduce headcount by 50% and will shift to a tighter strategic commissioning role, as NHS England is brought back into the DHSC within two years.
  • The one-off redundancy bill is put at about £1bn, with no new Treasury cash; the NHS can overspend this year and is expected to recoup costs from future savings.
  • Ministers say cutting bureaucracy will raise £1bn a year by the end of the Parliament for patient services, while detailed implementation plans and timelines are still to come.
  • NHS bodies welcomed clarity but unions warned of distress and loss of expertise, with local impacts already visible in Greater Manchester and reports of roughly 3,000 voluntary exits.