The announcement came in NHSE's Oversight Framework which was published yesterday.

The document states: ‘We will not be segmenting ICBs in 2025/26, as this will be a year of significant change for ICBs as they transform in line with the Model ICB Blueprint to focus on strategic commissioning and implement plans to meet the running cost reductions.'

ICBs were asked in the Blueprint to submit plans by 30 May on how they intend to achieve a £18.76 per head of population operating cost envelope.

The document also advised ICBs to streamline boards and reduce headcount.

Sarah Walter, director of the NHS Confederation's Integrated Care Systems Network, said: ‘Our members will welcome this framework, which sets out measures to address the significant operational and fiscal challenges facing the health service.

‘The fact that NHS England will not this financial year place ICBs into segments based on their performance shows they understand the pressure ICBs are under. It will also give systems an opportunity to focus on making the financial cuts and restructuring required of them in the short-term.'

NHSE said the framework will be reviewed in 2026/27 to incorporate work to implement the ICB operating model and to take account of the ambitions and priorities in the 10-Year Health Plan.