Daniel Elkeles, chief executive of NHS Providers, said the news was ‘very significant and encouraging'.

He added: ‘For all those doomsayers who said the NHS couldn't pick itself up and make progress on productivity, here's proof that it can.

‘The increased adoption of AI technology and digital advances will help build on this.

‘It's clear that hospital, mental health, community and ambulance services are committed to ensuring that every pound invested in the NHS is well-spent, driving up activity while protecting and improving standards of care.'

The Government's 10-Year Health Plan commits to 2% productivity growth over the next three years.

A report by The Health Foundation in March 2025 warned that missing the target could cost the NHS £13bn.

Health and social care secretary Wes Streeting said: ‘We're boosting productivity through a range of measures – from sending in crack teams to underperforming trusts, clamping down on wasteful agency spend and increasing use of technology. This is having a real-life impact for patients – quicker access to tests and treatment.  

‘We're turning the NHS round after years of neglect but I know too many people are still waiting too long. That's why we're combining record investment of £29bn with tough reforms, making sure every pound is spent on cutting waiting times and improving care for patients through our Plan for Change.'

Speaking to The Times, Streeting said the NHS could save £20bn if every NHS trust operated as efficiently as the best.