Today I am updating the House on steps the Government will take to ensure the NHS is playing its part in tackling deep and long-standing inequalities in our country.
First, we are determined to better allocate funding to primary care providers in a way that reflects the additional complexity of delivering care in communities with high levels of ill health. GP practices serving more deprived areas receive on average 9.8% less funding per needs-adjusted patient than those in less deprived communities, despite having greater health needs and significantly higher patient-to-GP ratios. We recognise the importance of ensuring that funding for core services is distributed equitably between practices across the country. The Government will therefore commission a review of the Carr-Hill formula to ensure fairer allocation of resources to general practice. The Advisory Committee on Resource Allocation will also be asked to advise on how the setting of integrated care board allocations can better support the reduction of health inequalities to ensure that resources are targeted where they are most needed.
Secondly, I am confirming today that the Government intend to phase out deficit support funding starting from 2026-27. This funding was worth £2.2 billion in 2025-26. This change will help ensure that NHS funding is not simply directed to overspending systems, but instead reaches parts of the country where poor health outcomes and inequality are most concentrated. Details on how this change will be implemented will be set out in the medium-term planning information published later this year.
Thirdly, the Government will harness the role of the NHS as the nation’s largest employer by launching a new £5 million widening access demonstrators programme. In 2025-26, funding will be allocated to 10 integrated care systems to support 1,000 people nationally, from working-class communities disproportionately affected by unemployment and economic inactivity, into roles in health or social care. Participants will receive tailored training and employment support to help them move into employment or further training, with a focus on supporting individuals into permanent or longer-term employment opportunities, including in roles such as healthcare support and pharmacy support, or as administrative or facilities staff.
These measures form part of our commitment to delivering a fairer, more accountable, and more effective NHS, with resources and opportunities focused on the areas and communities that need them most.
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