In a bold move to streamline healthcare management and cut bureaucratic costs, Prime Minister Keir Starmer has announced the abolition of NHS England. The decision aims to merge NHS England with the Department of Health and Social Care (DHSC), centralizing management and promising more efficient governance. Starmer’s attack on the “two layers of bureaucracy” in the health service underpins this significant shake-up. But what does this mean for the NHS, its staff, and, most importantly, its patients?

The Government’s Announcement: A Major Healthcare Shake-up

On a transformative day for the NHS, Starmer unveiled plans to dismantle NHS England, an organisation running since 2013 with a workforce of 15,000 staff members. This move aligns with Starmer’s broader vision of reducing bureaucratic layers and optimizing taxpayer spending.

The plan merges NHS England’s responsibilities with the DHSC, led by Health Secretary Wes Streeting. Starmer justified the reform by emphasizing the need to avoid duplicative administrative efforts, stating, “Why should decisions on £200 billion of taxpayer money be made by an arm’s length body like NHS England?”

Starmer’s reform rhetoric focuses on channeling resources directly into frontline services—nurses, doctors, surgeries, and GP appointments—rather than administrative overheads.

Understanding ‘Two Layers of Bureaucracy’

Starmer’s critique revolves around the perceived redundancy between NHS England and DHSC, both having dedicated teams for GP services, mental health, emergency care, and policy-making. This duplication, according to Starmer, leads to inefficiency and increased costs, draining resources from patient care.

Starmer argued that eliminating overlapping communication, strategy, and policy teams would reduce costs and enhance decision-making efficiency, benefiting patients with improved healthcare delivery and reduced waiting times.

NHS England’s Role in the Healthcare System

Before its abolition, NHS England played a pivotal role in commissioning clinical commissioning groups (CCGs), local NHS bodies replacing primary care trusts. These groups ensured the delivery of clinical services like GP care, hospital treatment, and mental health services across England.

NHS England managed a £200 billion budget and oversaw healthcare operations across England, with about 1.5 million NHS employees working through 220 health trusts. It ensured key performance indicators like the four-hour A&E wait and 18-week hospital treatment targets were met.

By centralizing these responsibilities under DHSC, the government aims to simplify governance, reduce duplication, and enhance policy coherence across the health service.

The Fate of NHS England’s Workforce

The abolition of NHS England will significantly impact its 15,000 staff. According to NHS England’s outgoing CEO, Amanda Pritchard, the administrative “centre” of NHS England and DHSC in London is expected to shrink by around 50%. Staff within NHS England’s 42 integrated care boards (ICBs) will see substantial job losses, with about half losing their roles.

Some employees will be made redundant, while others will transfer to DHSC roles. The integration of NHS England staff into DHSC structures is designed to minimize disruption, but the scale of workforce reduction raises concerns about loss of expertise and operational capacity.

Leadership Changes and Organizational Overhaul

The leadership overhaul accompanies NHS England’s abolition. Amanda Pritchard, the CEO, confirmed her departure by the end of February 2025. Senior executives, including Medical Director Prof. Steve Powis and Deputy CEO Julian Kelly, also announced their exits.

Sir Jim Mackey will replace Pritchard as CEO, while Dr. Penny Dash, a doctor and former McKinsey executive, will take over as chair. These leadership changes align with the government’s aim to revamp NHS management, reflecting the shift toward centralized governance under DHSC.

Starmer and Streeting’s Surprise Move

Neither Starmer nor Streeting had indicated such a drastic reform plan before the announcement. Health Secretary Streeting explicitly ruled out merging NHS England and DHSC as recently as January 2025. This abrupt policy shift highlights the government’s urgency to overhaul NHS governance and cut administrative expenses.

Starmer’s promise to deliver the most radical NHS reform since its founding in 1948 demonstrates the government’s commitment to restructuring the health service for enhanced efficiency.

Implications for Patients: What Patients Can Expect

For patients, the abolition of NHS England and the merger with DHSC carry both potential benefits and concerns:

1. Improved Resource Allocation

Starmer asserts that reducing bureaucracy will free up funds for frontline services—more doctors, nurses, and better equipment—ultimately improving patient care. Patients can expect quicker access to GP services, reduced waiting times for surgeries, and enhanced emergency care.

2. Streamlined Decision-Making

With centralized governance under DHSC, decisions related to funding allocation, healthcare policy, and service delivery will be made more quickly and coherently. This change could lead to more responsive healthcare services, ensuring patients receive timely care.

3. Potential Job Losses and Expertise Drain

The reduction in administrative staff may affect operational efficiency, with concerns about losing experienced NHS England personnel. A workforce cutback could strain remaining staff, impacting patient care quality, especially in administrative and policy-making roles.

4. Consistency in Healthcare Delivery

Merging NHS England with DHSC may standardize healthcare delivery across England, reducing regional disparities. Patients may experience more consistent care standards, aligning with national healthcare priorities.

5. Impact on Integrated Care Boards (ICBs)

ICBs play a crucial role in regional healthcare oversight. With staff reductions in ICBs, there are concerns about managing local healthcare needs effectively. Patients might experience delays or inconsistencies in accessing specialized services.

6. Focus on Core Healthcare Services

By cutting administrative costs, the government intends to direct more resources to core services, such as GP access, mental health care, and emergency services, directly benefiting patients.

Challenges and Concerns

While the government’s reform plan aims to enhance efficiency, it faces several challenges:

  • Transition Complexity: Integrating NHS England’s administrative functions into DHSC involves complex logistical and operational adjustments, risking temporary disruptions in healthcare services.
  • Staff Morale: Job losses and leadership changes may affect staff morale and productivity, potentially impacting patient care.
  • Accountability Concerns: Centralizing decision-making may raise concerns about accountability and transparency in healthcare governance.
  • Policy Implementation Risks: Rapid reforms may lead to policy misalignment or implementation delays, affecting patient services in the short term.

International Comparisons and Lessons

Other countries with centralized healthcare management models, like Sweden and Denmark, have shown that streamlined governance can lead to efficient healthcare delivery. However, rapid restructuring must balance efficiency gains with service continuity to avoid adverse effects on patient care.

The Future of NHS Governance

Starmer’s reform represents a significant shift in NHS governance, aiming to reduce administrative overhead and improve patient care. The government plans to maintain performance metrics like A&E wait times and surgical targets, ensuring quality care standards.

The abolition of NHS England reflects a broader effort to modernize the NHS, balancing cost-efficiency with the commitment to high-quality healthcare services.

A New Era for the NHS

The abolition of NHS England and its merger with DHSC marks a historic moment in the evolution of England’s healthcare system. While the government promises improved efficiency and patient care, the transition must be managed carefully to maintain service quality and staff morale.

For patients, the focus remains on timely, accessible, and high-quality healthcare. The reforms aim to achieve this by cutting unnecessary bureaucracy and ensuring that healthcare decisions are made efficiently and transparently.

As the NHS embarks on this transformative journey, the ultimate measure of success will be improved patient outcomes and enhanced healthcare delivery across England.