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NHS funding: where does the health service get its money?

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As NHS staff continue to strike over pay and working conditions, more people are looking into how the health service operates – and what rising wages could mean for our taxes.

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The government has resisted most public sector workers’ requests for pay increases in the last six months, despite actual pay cuts over the last decade.

But it is important to understand where exactly NHS funding comes from, how much of it goes towards its wider workforce and what it would mean if the government were to increase pay.

HuffPost UK will take you through the basic mechanics of healthcare finance.

How much does the NHS cost?

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Spending for the NHS has increased over the years due to the extra cost of the Covid vaccine and free Covid testsTS.

So, while the UK spent 10.2% of GDP on health in 2019 (the average among comparable countries at the time, according to think tank The King’s Fund) However, it is estimated to increase to 12.8% in 2020.

In 2019–2020, the NHS cost the Department of Health and Social Care £156 billion, in 2020–2021 it would cost £201.4 billion, and in 2021–2022 £199 billion.

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Estimates suggest that there will be a reduction in expenditure in 2022-2023.

The NHS should cost around £180.2 billion, with subsequent annual budget increases of £2 billion each.

What are the NHS Key Results?

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Health services are provided in the UK, which means that the respective governments in Scotland, Wales and Northern Ireland manage their own annual budgets.

NHS England, which has the highest number of patients, and NHS reform will receive £152.6 billion in 2022-2023 to spend on health services.

Most of this (just under £108 billion) allocated to local health services.

According to Sanctuary Personnel (Health and Social Care Recruitment Company), less than £30 billion is spent on direct commissioning services, including primary care services, specialized services and public health.

“The rest of the money goes to service development and improvement programmes,” it adds.

working around the NHS in England 1.2 million full-time equivalent employees By June 2021.

So, surprisingly, around 46.6% of its total budget goes into paying these staff members – that’s £56.1 billion.

This does not include salaries for staff at the Government Department of Health and Social Care or GPs for NHS England (they are funded indirectly through the NHS).

It is worth looking at how much the procedures cost.

The average nine-minute GP consultation costs £39.23.

A simple trip to A&E can cost between £77 and £359, while the average cost of taking a patient to A&E in an ambulance was £292 (between 2019 and 2020).

The cost of an operation can be very high, usually ending in the thousands, and depends on how long the patient stays in hospital and where in the country.

So, how is all this NHS funded?

General taxation still accounts for most NHS funding, in particular income taxes.

A small portion comes from revenue – prescriptions, dental treatment, car parking fees, the sale of land and costs for offering private health services.

Income from patient fees and charges for prescription and dental care was £1.5 billion, or 1.1% of the total DHSC budget, in 2019/2020.

However, to boost funding, the National Insurance Contribution (NIC) was also increased in April 2003.

according to gov.uk website, Between 2020 and 2021, 21.9% of public expenditure was spent on health.

Each year, the level of NHS funding is set by the central government through a spending review process.

It looks at how much income the NHS will receive from user chargers, the NIC and general taxation.

It tries to balance this, so if the NIC falls one year, normal taxation will be raised.

Why do people care about it now?

NHS funding has actually decreased under the Tories.

In form of institute of financial studies Found, NHS spending increased by an average of 4% between 1955-56 and 2019-2020.

But annual increases have been down for all but the average since 2010, made up of the huge amount pumped into healthcare before 2010.

So, this means that the salaries of the employees are not increasing as much as it used to be.

According to the independent pressure group, the NHS Support Federation, These problems are compounded by the government’s repeated demands for huge efficiency savings, which providers have found “unacceptable”.

On top of that, according to the NHS Support Federation, private sector companies are winning bigger contracts, public funding is being siphoned away, frontline staff are being cut, and almost half of staff say underfunding is making them unable to do their jobs. prevents it from doing properly.



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