NICE currently assesses value for money for the NHS by applying a cost-effectiveness range of £20,000 to £30,000 per quality-adjusted life years (QALY) gained. It has now been agreed that NICE will apply new thresholds of £25,000 to £35,000/QALY as soon as NICE has the power to do so, following a change in regulations.

The change is designed to improve the operating environment for pharmaceutical companies in the UK to maximise the government's commitment to unlock innovation and support the sector.

NICE currently recommends 91% of the medicines it evaluates, around 70 a year, analysis suggests that increasing the standard threshold to £25,000 - £35,000 will allow it to recommend an additional 3-5 new medicines or indications per year.

In addition, NICE's independent committees will hear from people affected and their carers, clinical experts and examine real-world evidence of how the treatment performs outside of clinical trials, before reaching final decisions on the use of medicines. 

Dr Samantha Roberts, NICE chief executive, said: ‘In a health service funded by general taxation it is right that government decides on the level of health spend in the UK. The newly agreed thresholds aim to support the life sciences sector and broader economy.

‘NICE's global reputation for robust, rigorous, transparent guidance will not change as we work with independent committees to apply the new value for money thresholds in their deliberations from April 2026.'

A NICE-hosted webinar: Changes to NICE's cost-effectiveness thresholds next steps will take place on 3 December. You can register to attend the event here.