Progress in making NHS efficiency savings: report, together with formal minutes, oral and written evidence

Document type
Report
Corporate author(s)
Great Britain. Parliament. House of Commons. Committee of Public Accounts
Publisher
TSO
Date of publication
22 March 2013
Series
House of Commons papers. Session 2012/13; HC 865
Subject(s)
Health Services
Collection
Social welfare
Material type
Reports

Download (856KB )

The Department of Health (the Department) has estimated that the NHS needs to make efficiency savings of up to £20 billion in the four years to 2014-15. This should allow the NHS to keep pace with the growing demand for healthcare and live within its tighter means. The Department reported that the NHS made savings of £5.8 billion in 2011-12, virtually all of that year’s forecast of £5.9 billion. The Department expects that by the end of 2012-13 the savings made will total £12.4 billion.

The NHS appears to have made a positive start but the Committee cannot be fully confident in the savings figures reported. At local level primary care trusts measure and report savings in different ways. For example, the often significant costs associated with generating savings are not consistently taken into account in reporting the savings achieved. Using national data the Department can substantiate only £3.4 billion of the savings reported for 2011-12.

Most of the savings to date have been achieved through freezing the pay of NHS staff and reducing the prices paid for healthcare. The more challenging, and risky, part of the efficiency drive requires transformation in the way health services are actually provided. Over the four years to 2014-15, such transformational changes are expected to generate 20% of the total savings, but the Department expects that by the halfway stage - the end of 2012-13 - just 7% (£875 million) of savings will have been generated in this way.

Related to TSO

BHS: First Report of the Work and Pensions Committee and Fourth Report of the Business, Innovation and Skills Committee of Session 2016-17. Report together with formal minutes relating to the report

BHS (British Home Stores), which was founded in 1928, was bought by Sir Philip Green in 2000. It became part of the Taveta group, which is ultimately controlled by Lady Green, in 2009. On 11 March 2015

A reconsideration of tax credit cuts: report, together with formal minutes relating to the report

The 2015 Summer Budget proposed draconian cuts to in-work tax credits in 2016-17. Even when combined with the welcome increase in the income tax personal allowance and the National Living Wage, these

Education, skills and productivity: commissioned research

The Education Committee and the Business, Innovation and Skills Committee agreed to carry out joint work on the contribution that education and skills make to productivity. In preparation for this work,

Welfare-to-work: report, together with formal minutes relating to the report

The Work Programme has streamlined the procurement of welfare-to-work, created a stable, GB-wide welfare-to-work infrastructure, and now produces a similar level of job outcomes for mainstream participants

More items related to this publisher