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  • Monday, 27 October 2025

NHS needs £3bn to cover strikes, redundancies and drug costs, say health leaders

NHS needs £3bn to cover strikes, redundancies and drug costs, say health leaders

Health officials have warned that NHS services and jobs in England will have to be cut unless up to £3 billion more in funding is allocated to cover unexpected costs. The NHS Confederation and NHS Providers, which represent trusts and other healthcare professionals, said in a joint statement that the expense of covering redundancies and strikes, as well as paying more for drugs, was not included in the budget this year and would require additional funds from the Chancellor. Health Secretary Wes Streeting has announced that talks between the Department of Health and the Treasury are ongoing. The Department of Health said the government was committed to properly funding the NHS, according to the department's tweet.

Cuts to NHS services and jobs could result in less tests, appointments, and operations being carried out. Senior managers have reported that calls from the government for significant job cuts in regional health boards and NHS trusts have been made without any promise of additional funding to fund at least £1 billion in redundancy payments. Staff layoffs will also be paid for as a result of NHS England's and the Department of Health's merger, which will also include employee layoff and reimbursements that must According to the NHS Confederation and NHS Providers, the doctors' strike in England in July resulted in £300 million in NHS trust costs, which also included rota gaps. They predict the cost will remain the same as during the previous planned strike in November. They go on to say that a potential agreement with the United States with higher medicine prices could cost the NHS $15,000 per year. 5bn. The US administration and large pharmaceutical companies have been urging the UK government to increase the amount paid for medications. The drug firms claim that if a deal is not reached, investment in UK study and the design of new drugs may be reduced. Health officials have also warned that if there is no Treasury assistance in making up the financial shortfall, any progress on reducing waiting lists will be affected. Some believe that uncertainty surrounding redundancy policies is distracting workers and managers from the task of turning around the NHS.

The threat from unbudgeted redundancy payments, higher drug prices, and renewed industrial action, according to Matthew Taylor, the NHS Confederation's chief executive, could prevent the NHS from meeting key deadlines and wider reforms that are vital to getting the NHS back on track.
Redundancies cost money, making it impossible to make long-term investments without government assistance,
NHS Providers Chief Executive Daniel Elkeles said.
As the government prepares its budget, it's time for an honest assessment and discussion about what the NHS can really do this year in these challenging financial conditions - and what is doable to satisfy ministers' goals in their 10-year health initiative.
This government has made a record-breaking £29 billion investment in our NHS, with up to £10 billion dedicated to digital and technology advancement and £750 million for urgent capital repairs,
a Department of Health and Social Care spokesperson said, demonstrating our unwavering dedication to properly funding the health care system that we all depend on. "However, investment alone isn't sufficient; with change, it must go hand in hand.

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