Monday 1 October 2018 / 9:05 AM NHS / Peter Dowd

£2.7bn in new cuts to the NHS

Chancellor to make £2.7bn in additional cuts to the NHS before next election

New analysis from the House of Commons library shows that the NHS will suffer £2.7bn in new cuts over the course of this Parliamentary term. 

The cuts come due to a government miscalculation, which underestimated the pension costs of all public sector workers by as much as £4bn a year.  

The Government has offered to cover departments’ additional costs for one year only, leaving the NHS to soak up two years’ worth of additional pension costs totalling £2.7bn before the next election. 

This is the equivalent of the salaries of 61,912 nurses. 

This is the second time that the Government has asked departments to make cuts to cover a mistake in pension calculations. This latest round comes in addition to nearly £4bn of cuts that government departments including health were forced to make in the 2016 Budget, when the government made the same mistake. 

The initial announcement was snuck out in a statement late on a Thursday when Parliament wasn’t sitting, meaning that billions of pounds in further austerity measures have not received parliamentary scrutiny. 


Peter Dowd MP, Labour’s Shadow Chief Secretary to the Treasury commented on the new House of Commons library analysis, saying: 

“Billions of pounds are being quietly cut from our NHS, due to a poisonous cocktail of disastrous economic mismanagement and spiteful behaviour.”

“These cuts are the equivalent of paying the salary of over 61,000 nurses a year. Nurses whom we desperately need after 8 years of crushing austerity in our NHS.”  

“The Chancellor must immediately own up and commit to meeting these extra costs, not just push them on to slashed and struggling public services.” 

“All this just goes to show, you cannot trust the Tories with our NHS.”