Much-needed extra cash for NHS still falls short given inflation pressures

Responding to the Autumn Statement, Nuffield Trust Chief Executive Nigel Edwards said: 

NHS Budget:

“The NHS warned it needed more money to cope with the impact of inflation on its costs. Today’s Autumn Statement has provided much-needed extra cash from April over the next two years, but this is only around half of what the NHS had warned last month would likely be needed. It also does not account for the £2.5 billion worth of inflation and other unexpected cost pressures the NHS has faced this current financial year.

“The impact of today’s funding announcement is that real terms health spending per head after adjusting for age will increase by less than 1% for the next two years. This is compared to the long-term average of 2.6%, and comes at a time when the NHS cannot afford to stand still and is desperately trying to increase the work it can do to clear record waiting times. 

On workforce:

"The Chancellor is absolutely right to identify poor workforce planning as a reason for some of the chronic staffing problems we see today. But workforce projections alone won't ensure we have the right staff in the right places. They need to be accompanied by a proper workforce strategy which ensures gaps in staffing are addressed in all services and all areas of the country.

On social care: 

“The new money for social care announced by the Chancellor today is a recognition of the severity of the situation. The funding allocated may help councils to keep up with inflationary pressures but is unlikely to be sufficient in the face of growing needs, over 500,000 people waiting for care and assessments, workforce shortages, and delays in people being discharged from hospital. The plans rely on councils being able to raise council tax, which risks creating greater inequality as more affluent areas are able to raise more, and will put huge pressure on people already struggling with cost of living hikes.

“The Chancellor also confirmed that the social care cap will once again be delayed and the money diverted to keeping the sector afloat. This will come as a disappointment to families facing eye-watering costs for care. While the cap was never the silver bullet for reform, this delay risks losing the momentum that was growing towards real and long-awaited change to the sector. On top of this, delaying the policy of moving towards paying a fair cost to care organisations is missing an opportunity to develop a more sustainable market for care and risks undoing the progress already made.”