Starmer scraps NHS England to cut costs and improve care

HUNDREDS of millions of pounds could be saved and patient waiting lists reduced as prime minister Keir Starmer announced plans to abolish NHS England, the body overseeing the state-funded health system.

In a speech delivered in Hull, Starmer explained his decision to streamline the National Health Service's management structure: "I can't, in all honesty, explain to the British people why they should spend their money on two layers of bureaucracy."

The Labour government, elected in July on promises to grow the economy and rebuild public services, is taking urgent action to address what an independent September report called the "critical condition" of the NHS.

The country's healthcare system has been severely strained by the combined effects of the Covid pandemic, an ageing population, and industrial action, leaving millions waiting months or even years for medical procedures.

This healthcare crisis has broader economic implications, with Office for National Statistics data showing 2.8 million people are economically inactive due to long-term illness.

Health secretary Wes Streeting acknowledged that the reform would be "difficult" but necessary to redirect resources to frontline care. The change aims to eliminate the administrative layer created in 2012 when a Conservative-Liberal Democrat coalition established NHS England as an "arms-length" body to oversee spending priorities and service management in England.

"I'm trying to build a new team, a new organisation, new culture, new way of working. It can't be just about shuffling the deck chairs," Streeting told Times Radio.

The reform is expected to halve the combined workforce of approximately 19,000 currently employed by NHS England and the Department of Health and Social Care.

However, Streeting clarified that existing NHS England staff would not automatically lose their positions: "If people are working in NHS England today, it doesn't mean inevitably their jobs are going and they won't be working in the new organisation."

The government directly manages healthcare in England through its health ministry, while Scotland, Wales and Northern Ireland maintain separate systems.

Streeting criticised the current arrangement, saying it had resulted in unnecessary duplication and excessive focus on compliance rather than value for money. By removing this layer of bureaucracy, the government hopes to free up substantial resources for direct patient care, including hiring more clinical staff and reducing the lengthy waiting times that have plagued the system.

The announcement comes as part of the government's broader strategy to address economic challenges and improve public services that have deteriorated in recent years.

January's unexpected 0.1 per cent contraction in GDP, following December's 0.4 per cent growth, has added pressure on the government ahead of its upcoming Spring Statement on the economy.

While the NHS as a whole employs more than one million people, this restructuring specifically targets administrative inefficiencies rather than frontline medical services.

(Agencies)