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Welfare cuts could increase pressure on NHS

Welfare cuts could increase pressure on NHS
By Beth Gault
27 March 2025



Welfare cuts announced in the spring statement yesterday could add pressure to the NHS, according to healthcare leaders.

In her spring statement, the Chancellor Rachel Reeves made several cuts to the welfare budget, including freezing the health element of universal credit to £97 a week until 2029-30 for existing claimants and new claimants only being entitled to £50.

Interim chief executive of NHS Providers, Saffron Cordery, said the confirmation of cuts to benefits was ‘a real concern’.

She said: ‘Mental health trust leaders previously told us that changes to universal credit and benefits were increasing demand for services, as were loneliness, homelessness and wider deprivation.

‘There are particular worries over the potential impact on disabled peoples’ health and their ability to support themselves.

‘With poor mental health the leading driver of ill-health related economic inactivity, trust leaders fear these changes could add to pressures on mental and physical health services which are already severely stretched.’

Matthew Taylor, chief executive of the NHS Confederation, added: ‘We all recognise that health budgets have been protected compared to other departments. But the abolition of NHS England and proposed running cost cuts to integrated care boards are coming at a very challenging time with services struggling to recover performance and begin to work towards the government’s three shifts.’

He said the reality was that the cuts would require ‘major changes’ and make ‘the task of delivering long-term transformation of the NHS much harder’.

‘Much of trust and ICS leaders’ focus will need to go on stabilising the NHS in the short term as they prioritise patient care, but we also need to ensure we get the right balance between recovery and reform given the opportunity provided by the upcoming ten-year plan. The danger is that we go too far and leave little to no capacity to deliver this long-term transformation.’

However, he welcomed the commitment to get people to return to work when they can.

Sarah Woolnough, chief executive of The King’s Fund, said the announcements would have ‘consequences for people’s health’.

‘The Office for Budget Responsibility’s accompanying assessment of today’s Spring Statement reveals that ‘unprotected’ departments outside of health, education and defence will have their budgets cut from next year. Such cuts could have knock-on effects on people’s health, and increase demand for health and care services,’ she said.

‘The NHS is not an island. There are a range of public services that impact our health,  such as the quality of housing, access to green space, and availability of transport. Similarly, the extent to which the NHS can prevent, diagnose and treat illnesses earlier can reduce pressures on other areas of public spending. 

‘The upcoming Comprehensive Spending Review will provide more detail in June. When the inevitable difficult choices are made, we hope that the plan to improve the nation’s health does not get knocked back by fiscal decisions in other areas.’  

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