Cutting the costs without cancelling the services: how to save £12bn in a year

Document type
Date of publication
1 June 2010
Health Services
Social welfare
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This paper looks at some of the immediate savings 2020health believe the NHS can make over the course of the year following publication. Despite health being exempt from budget cuts, with economic growth and deficit reduction at the top of the political agenda, huge reductions of £20bn need to be found if the NHS is to cope with the forecasted increase in demand for services. 2020health believe that making efficiency cavings is the responsible thing to do in healthcare, regardless of economic drivers. Efficiency has taken a back seat as the NHS has been spoilt for cash in the past decade and profligacy has reigned through lack of service integration, poorly negotiated contracts, unsustainable pensions and a fuelling of demand through the creation of a culture of dependency, irresponsibility and ignorance.

In the long term, the reductions required can be met by necessary reconfiguration of services, reducing variation in practice, reforming NHS pensions and reducing low-level demands. However, this paper sets our some of the immediate savings that 2020heath consider appropriate and necessary which can save the NHS £12.01bn in the next year. All figures the authors believe are the minimum savings that could be achieved, bearing in mind that some of the figures available for calculations are already, at the time of publication, a couple of years old. In some cases, even the organisations involved in payments did not know how much they are actually spending. Lack of accountability has to come to an end as the government seeks to ensure that taxpayer money is used wisely.

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