NHS redundancy payouts 'could reach £1bn'

The bill for NHS redundancy payouts following the abolition of NHS England could reach £1bn, new analysis suggests.

© Bank of England

© Bank of England

Up to 30,000 jobs are expected to be lost when NHS England is abolished and thousands of other jobs will be cut from the ICBs in England and corporate service posts in NHS trusts.

Analysis by The Observer of DHSC annual accounts shows nearly £450m has been paid in the past five years to staff in the department and its agencies who have taken voluntary or compulsory redundancy. These include 94 employees who each received more than £150,000 in the year to 31 March 2024.

In addition, the accounts reveal the average cost per employee of exit packages from it and its agencies that year was £48,840. Based on these figures, the next round of redundancies could cost between £700m and £1.2bn, The Observer concluded.

In response, a DHSC spokesperson, told The Guardian: ‘The figures claimed are based completely on speculation and not on fact.

'Our plans to bring the NHS back into the department will eliminate duplication, freeing up hundreds of millions of pounds for frontline care to deliver better treatment for patients.'

Roundtable: Why neighbourhood health's moment has arrived

Roundtable: Why neighbourhood health's moment has arrived

By Lee Peart 05 May 2026

There is a quiet but determined shift underway in how health and care services are imagined and delivered across England. No longer confined to hospitals or ...

Government rules out MPs' health visitors and vaccination recommendations

By Lee Peart 23 April 2026

MPs’ calls for a health visitor recruitment target and a new vaccinations strategy have been ruled out by the Government.

Hospital launches voluntary redundancy scheme

By Lee Peart 23 April 2026

A voluntary redundancy scheme has been launched by Torbay Hospital as it seeks to balance its books.


Popular articles by Liz Wells