A good settlement for the NHS but the government’s health mission is missing in action
Responding to the government’s first multi-year Spending Review, Jennifer Dixon, Chief Executive of the Health Foundation, said:
NHS
'Given the economic and financial challenges facing the government, a real terms funding increase of 3% a year is a good settlement for the NHS. But how far the money stretches and how much it benefits patients - will depend on how much is needed to fund pay settlements for NHS staff and how well the money is spent.
'While welcome, the extra funding is below the long-run average growth rate, so budgets will still be tight and it is essential that the NHS is fully focused on getting maximum value from every £ it spends. The government’s 2% annual productivity target for the NHS, confirmed today, is a huge ask, especially with capital investment in buildings and equipment looking constrained for the rest of the parliament, despite Lord Darzi’s warning last October about the consequences of longstanding capital starvation in the service.
'The additional funding for technology is welcome as a first downpayment on a long-term settlement to digitise the NHS. The focus needs to be on implementation to ensure the NHS realises the benefits and patients get the 21st century care they have been promised.'
Health
'The UK’s health is falling further behind our international peers – especially the health of working age people – and inequalities in health are more entrenched than ever. While there are some positive moves including building more affordable homes, confirmation of spending on employment support and wider provision of free school meals, the priority given to the NHS and defence leaves a tight settlement for other areas of spending that promote good health.
'The missing link in today’s Spending Review is a comprehensive long-term strategy to improve the nation’s health and tackle inequalities. The government’s health mission appears to be missing in action, while the opportunity to deliver a radical shift towards a preventative approach to public services has been missed.
'Attention will now turn to the upcoming vote on the reforms to health and disability benefits and the publication of the child poverty strategy in the autumn, both of which will have significant implications for the health of some of our poorest and most vulnerable citizens.'
Social care
'Our research shows that 1 in 5 residential care staff are living in poverty, so we welcome the commitment to implement a new fair pay agreement for the social care workforce. But an overall increase in funding of £4bn for social care by 2028/29 is only enough to prevent a further deterioration in services and will not be sufficient to fund increases in pay or improve access to or quality of care.
'The need for investment and reform grows ever more urgent for all the people currently going without the care they need, so we encourage the Casey Commission to move as quickly as possible with its review and to hold ministers to account for taking the action their predecessors ducked.'
Conclusion
'Before the General Election, we and others warned that the new government would face difficult choices on public spending and taxation. Almost a year on and with a significant rise in defence spending now added into the mix, it is clear that something will have to give. Looking ahead to the rest of the parliament, either taxes will need to rise or the government will need to be clear with the public about the level of public services they can expect.'
Media contact
Nick Codling
nick.codling@health.org.uk
020 8152 8116