The new data, for the week ending 28 December, shows there were 2,676 patients in hospital with flu last week, compared to 3,061 the week before.
Demand on the wider NHS remains high with the second-highest number of calls to 111 answered in two years last Saturday - 87,318 calls were answered on Saturday 27 December.
A total of 414, 562 calls to NHS 111 were reported as answered during Christmas week, almost 24,000 more than the previous week.
The figures also show that ambulance handover times continue to fall, with a drop of two-and-a-half minutes week on week, and more than 14 minutes quicker than last year.
The new data comes as the UKHSA issued Amber and yellow cold health alerts for England, as temperatures have fallen in recent days to drop below freezing, which could increase pressure on hospitals.
Professor Meghana Pandit, NHS national medical director, said: ‘It is welcome news to see a drop in the number of people being admitted to hospital with flu, thanks in part to the extraordinary efforts of NHS staff with more than half a million more people vaccinated against flu compared to the same period last year.
‘The NHS is far from complacent as temperatures drop with this likely to increase pressures in the New Year, and demand on services remaining high with NHS 111 services recording their second busiest day in two years on Saturday.'
Health and social care secretary, Wes Streeting, said: ‘In spite of all of the challenges the NHS faces this winter, the Herculean efforts of NHS staff and our investment and modernisation mean that hospital bed occupancy is lower than this time last year and ambulance handover performance is improving.
‘But we still face intense pressures, and with this bitingly cold snap adding additional challenges it is more vital than ever those eligible get their flu jab and people only attend A&E in an emergency.'
