Thousands of administrative and managerial staff are expected to leave the NHS in England after the Treasury agreed to let the health service overspend this year to fund the NHS job cuts 18,000 redundancies. The decision marks one of the most significant restructures in a decade, aimed at channelling future savings into hospitals and community care.
Health Secretary Wes Streeting confirmed the move as part of efforts to “strip away layers of bureaucracy” and “rebuild an NHS focused on patients rather than paperwork.” The deal allows the service to exceed its budget this year to pay for redundancies, estimated to cost around £1 billion, with savings recouped in future years.
“People want to see the front line prioritised, and that is exactly what we’re doing,” Streeting said, describing the move as “the first step on the road to recovery.”
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A shift in structure
The changes will see NHS England gradually brought back under the Department of Health and Social Care within two years, reversing reforms from the past decade. Local Integrated Care Boards, which plan and commission services in each region, are expected to cut their headcounts by up to half.
Government figures argue the restructuring could free around £1 billion a year by the end of the parliament, funding equivalent, they say, to more than 100,000 hip and knee operations. The aim, they insist, is not to reduce investment but to reallocate it more directly to patient services.
Impact on staff
Health leaders have described the deal as a “pragmatic step” that provides clarity after months of uncertainty. Yet unions warn that the scale of redundancies could undermine vital coordination between hospital trusts, community services, and social care providers.
Patricia Marquis of the Royal College of Nursing said the changes risk being “a false economy.” She added: “To imply these are simply administrators shows a lack of understanding. Many of these staff run public health programmes, oversee care for the vulnerable, and keep the system connected.”
Concerns about disruption
Senior figures within the service have raised questions about how the transition will be managed. NHS England currently oversees daily operations, digital innovation, and national training programmes — functions that will now move closer to Whitehall.
The government maintains that the transition will be gradual, with an emphasis on supporting affected staff and minimising disruption to patient services. Officials say the reforms will modernise the service and improve accountability to taxpayers, even if the short-term impact is painful.
“It won’t happen overnight,” Streeting said, “but with investment and modernisation we will rebuild our NHS so it’s there when people need it once again.”
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