Question to the Department of Health and Social Care:
To ask the Secretary of State for Health and Social Care, with reference to his Department’s press release entitled Patients treated more quickly as NHS productivity rises over year, published on 22 September 2025, what estimate he has made of the monetary value of the increased acute sector costs referred to; and if he will provide a breakdown of that expenditure.
National Health Service productivity is measured by comparing the amount of healthcare activity delivered, otherwise known as outputs, against the resources used, otherwise known as inputs, over time. To estimate the growth in costs, data is drawn from financial returns submitted by NHS trusts, known as Provider Financial Returns. These returns capture spending across the system. However, certain items that are not directly related to patient care activity, such as one-off or exceptional costs, are excluded to ensure the analysis reflects core service delivery.
To allow for a fair comparison between years, the figures are adjusted to remove the effects of inflation and NHS pay awards. This process, known as “deflation”, ensures that any changes in cost reflect real changes in resource use rather than price increases. This is standard practice in productivity analysis.
Following these adjustments, the estimated increase in acute sector costs between 2023/24 and 2024/25 is £3.0 billion. This figure reflects the additional resources used to support increased activity in acute care settings, such as hospitals.