Chancellor Reeves Snubs Health Secretary's Plea for £1bn to Cover NHS Redundancies
In a blow to Health Secretary Wes Streeting, Chancellor Rachel Reeves has rejected his plea for an emergency injection of £1 billion into the NHS's budget to cover the cost of mass redundancies. The Treasury had instead allowed the Department of Health and Social Care (DHSC) to overspend its allotted budget by about £1 billion this financial year, but at the cost of less money in 2026-27.
Streeting had been lobbying behind the scenes for extra funding to enable the NHS's 42 integrated care boards to start slimming down their roles, with 18,000 personnel set to lose their jobs. The additional £1 billion was needed to let the boards finally reduce their workforces and cover payoffs to an unknown number of employees at NHS England.
The decision comes after months of disagreement over who should foot the bill for the redundancies, which are part of a radical restructuring of the health service in England. NHS bosses had previously warned ministers that they needed £3 billion more this year to cover the cost of redundancies, strikes by resident doctors, and rises in drug prices.
While Streeting will confirm that the care board redundancy programme is finally beginning at the annual conference of NHS Providers in Manchester on Wednesday, his decision marks a setback for the health secretary's efforts. The Treasury has offered to provide extra funding if the DHSC agrees to absorb the cost of higher drug prices, but no agreement was reached.
The news comes as NHS services face uncertainty over their future, with investment set to be protected under the agreed funding arrangements. However, managers in the sector are warning that the fate of important care board functions remains uncertain, and that staff will face an "intolerable position" due to redundancies.
Overall, Chancellor Reeves's decision highlights the ongoing challenges facing the NHS as it navigates a period of significant restructuring and financial pressures. The government's failure to provide sufficient funding for the health service has left many feeling anxious about the future of their jobs and the services they provide.
In a blow to Health Secretary Wes Streeting, Chancellor Rachel Reeves has rejected his plea for an emergency injection of £1 billion into the NHS's budget to cover the cost of mass redundancies. The Treasury had instead allowed the Department of Health and Social Care (DHSC) to overspend its allotted budget by about £1 billion this financial year, but at the cost of less money in 2026-27.
Streeting had been lobbying behind the scenes for extra funding to enable the NHS's 42 integrated care boards to start slimming down their roles, with 18,000 personnel set to lose their jobs. The additional £1 billion was needed to let the boards finally reduce their workforces and cover payoffs to an unknown number of employees at NHS England.
The decision comes after months of disagreement over who should foot the bill for the redundancies, which are part of a radical restructuring of the health service in England. NHS bosses had previously warned ministers that they needed £3 billion more this year to cover the cost of redundancies, strikes by resident doctors, and rises in drug prices.
While Streeting will confirm that the care board redundancy programme is finally beginning at the annual conference of NHS Providers in Manchester on Wednesday, his decision marks a setback for the health secretary's efforts. The Treasury has offered to provide extra funding if the DHSC agrees to absorb the cost of higher drug prices, but no agreement was reached.
The news comes as NHS services face uncertainty over their future, with investment set to be protected under the agreed funding arrangements. However, managers in the sector are warning that the fate of important care board functions remains uncertain, and that staff will face an "intolerable position" due to redundancies.
Overall, Chancellor Reeves's decision highlights the ongoing challenges facing the NHS as it navigates a period of significant restructuring and financial pressures. The government's failure to provide sufficient funding for the health service has left many feeling anxious about the future of their jobs and the services they provide.
. This £1 billion reduction is going to cause a lot of job losses, especially among staff who are already under pressure. I think it's a sign that we're not prioritizing our healthcare system enough. The fact that they're trying to make the care boards reduce their workforce without extra funding is just not fair on those hardworking NHS employees 
. We need to find a way to support them, especially with all the other challenges they face like rising drug prices and strikes by doctors. It's heartbreaking to think about what this decision means for patients who rely on these services 
. We should be investing in our healthcare system, not cutting funding at the worst possible time 
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. We need more funding, ASAP!
the nhs is literally breaking down rn 
chancellor reeves is straight up playing with people's lives 
if they're gonna save a buck or two from this £1 billion then where's the money for actual healthcare services? 
and staff are left in an "intolerable position" 
what's next? more privatization? 
i'm so tired of these governments playing politics with people's health 
i mean, they've already said nhs managers are gonna be in an "intolerable position" what's gonna happen to all those staff members 
. it's not just about the money though... it feels like they're being forced into this huge restructuring without any real planning or support 
The care board redundancy programme is basically just a fancy way of saying "we're cutting jobs". It's so frustrating that the government can't come up with a better solution. 
who was trying to do what's best for the patients 
... NHS staff are already working so hard and this is how they're treated 
... 3 billion more was needed but it seems like no one listened 
... i can imagine how scary it must be for patients who rely on those care boards for their services 
... we need to support our NHS workers during this tough time 
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. It's time to prioritize the health and well-being of our citizens over bureaucratic red tape 
. I mean, who's more important – the government or the people they're supposed to be serving? 
The Chancellor's stance on this issue is really quite concerning 
.
The government needs to step up its game 
We need to prioritize people's lives over politics 
It's time for a change 
anyway, 1 billion quid sounds like a lot but apparently not enough to keep those NHS jobs safe, guess that's why they call it austerity...and not 'austerity-me' 