Funding for health services in England comes from the Department for Health and Social Care’s budget. Planned spending for the Department of Health and Social Care in England is £190.3 billion in 2021/22.
The majority of the Department’s spending (£136.1 billion in 2021/22) is passed to NHS England and NHS Improvement for spending on health services. The remainder is allocated to other national bodies for spending on other health-related functions such as public health (including grants to local authorities), training and development of NHS staff, and regulating the quality of care.
The Department’s spending in 2021/22 includes £33.8 billion to respond to the Covid-19 pandemic – this includes procuring personal protective equipment for staff, the vaccine and Test and Trace programmes, and improving the discharge process for hospital patients. Together with additional funding for delivering the government’s manifesto commitments, the Covid-19 spending means the Department’s budget grows rapidly between 2019/20 and 2022/23 before levelling off in future years.
For more information on the recent funding announcements on the NHS – including the health and care levy – please read our blog: The Autumn Budget and Spending Review 2021: what was announced and what does it mean for health and care spending?