News
NHS set to make thousands of staff redundant after being given go-ahead
HM Treasury has permitted the health service to overspend its budget this year.
Emily Sergeant -
13th November 2025 
Thousands of NHS staff are set to be made redundant after the £1 billion needed to fund them was approved by the Government.
The Government had already announced earlier this year its intention to cut the headcount across both NHS England and the Department of Health by around 18,000 administrative staff and managers, including on local health boards.
But before this was to happen, the HM Treasury had to approve the funds first.
National news outlets such as the BBC and Sky News are reporting that the Treasury has not granted additional funding, which is something that Health Secretary Wes Streeting is understood to have been pushing for.
But the NHS will, however, be permitted to overspend its budget this year to pay for redundancies – with the aim that it will recoup the costs further down the line.
Health Secretary Wes Streeting has been in Manchester this week at the NHS Providers’ Conference, where he addressed attendees to announce the redundancies move saying: “Headcount across my department and NHS England will be halved, returning to the size we had in 2010 when the NHS delivered the shortest waiting times and highest patient satisfaction in history.”
He also told delegates at the conference that there was ‘no money to waste’, given the state of public finances.
According to the Department of Health, the redundancies and overall reforms to NHS England will cut ‘unnecessary bureaucracy’ and raise £1 billion a year to improve services for patients.
Today, we're announcing the next steps in modernising our NHS so we can invest more into patient care.
— Department of Health and Social Care (@DHSCgovuk) November 12, 2025
By cutting bureaucracy, our plans will mean an extra £1 billion a year for NHS services – enough to fund an extra 116,000 hip and knee operations. https://t.co/3LbJsuexW0 pic.twitter.com/r3Aiix80yX
It said that every £1 billion saved in bureaucracy costs is enough to fund an extra 116,000 hip and knee operations.
NHS Providers’ Chief Executive Daniel Elkeles has called the move a ‘pragmatic step’ that means planned redundancies can now go ahead.
“It reflects the flexibility of a three-year settlement, allowing some funding to be brought forward in order to generate future savings to go into frontline care,” he added in a statement this week.
“However, we must recognise the position of staff affected by these changes, who face a very uncertain future.”
Read more:
- NHS to set up new ‘online hospital’ that gives patients more control over their care
- How Greater Manchester ranks as NHS ‘league tables’ are published for first time ever
- NHS strikes deal with private sector to cut waiting lists across the UK
Chancellor Rachel Reeves is expected to make further announcements concerning the NHS in the upcoming Budget on 26 November.
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