The NHS is predicting a £2 billion deficit due to rising hospital admissions and treatment costs, particularly for long-term conditions, which could increase by £4 billion by 2016. Staffing costs account for 40% of NHS spending, while medicine bills rose significantly from £12.9 billion in 2012 to £14.8 billion in 2015. The NHS Confederation is urging for a ten-year funding commitment from politicians to alleviate financial pressures.

1. NHS FINANCES Experts are predicting a £2bn deficit in the NHS budget
Increase in hospital admissions 2008-13 1,665,8054
Increase in operations 2008-13 1,988,3215
Up to
£17.9bn
a year is spent on
conditions related
to lifestyle 1
Cost of treating
long-term conditions
estimated to increase by
+£4.0bn
by 20163
STAFF PAY =40%
of NHS spending 2
UK NHS medicine bill 8
2012 £12.9bn
2015
£14.8bn
Cost of
£14.8bn of
£3.8bn
efficiency
savings
made since 20119 The Better Care Fund6
Cost of
implementing
Francis and Keogh
in 2013/147
£1.2bn
Procurement
savings
reduction in non-pay
costs of £2.0bn
by 2016
in 2015/16
up to
Increase in
funding in real terms 10
2010 £5.18bn
2013 £0.85bn
2016 £0.08bn*
* Planned
nhsconfed.org @nhsconfed
The NHS Confederation is calling for a commitment from politicians for
a ten-year spending settlement on the NHS to give our members the space
to release the pressure. Find out more at www.nhsconfed.org/finance
1 NHS Confederation, Tough times, tough choices. 2 The concise NHS handbook 2013/14. 3 House of Commons Health Committee,
Managing the care of people with long–term conditions, June 2014. 4 Hospital Episode Statistics. 5 Hospital Episode Statistics.
6 NHS England. 7 Foundation Trust Network. 8 Office of Health Economics. 9 Department of Health Evidence to the Health Select Committee 2013.
10 Public Expenditure Statistics Analysis 2013. © NHS Confederation 2014. INF38901