Autumn budget 2024 - what it means for health and social care
The autumn budget includes significant updates for the health and social care sector. Here’s a quick look at the key changes.
Major boost to NHS funding
The NHS will receive a major increase in funding:
- Day-to-day funding for the Department of Health and Social Care will rise by £22.6 billion by 2025-26.
- NHS England’s budget will grow from £171 million to £192 million over two years, marking a 4% annual growth rate.
These increases aim to help the NHS meet rising demands and reduce the financial pressures on service providers.
Capital investment for equipment and facilities
The government has also committed to boosting NHS capital investment:
- £13.6 billion in capital funding by 2025-26.
- £1.5 billion for new equipment, such as hospital beds and scanners.
- £1 billion to reduce the NHS’s backlog of maintenance and repairs.
While these investments are a step forward, the total cost to fully address the NHS’s maintenance needs is estimated at £13.8 billion.
Targeted investments
Specific funding has been allocated for:
- £70 million for new radiotherapy equipment to support cancer care.
- £2 billion for NHS technology, including electronic patient records and NHS app enhancements.
- £460 million to prepare for future health emergencies, including PPE, vaccines, and lab upgrades.
- £26 million to open mental health crisis centers.
- A fund to improve over 200 GP practices, creating more patient appointment availability.
Social care: Modest funding increase and potential cost pressures
Local authorities (councils) will receive an additional £600 million for adult social care, adding to an estimated 3.2% increase in real terms for local government budgets. However, additional pressures on social care providers may limit the impact of this funding. These pressures include:
- Increased National Insurance contributions by 1.2%.
- A reduction in the threshold for employer National Insurance contributions from £9,100 to £5,000.
- A 6.7% increase in the National Living Wage, which will increase provider costs.
Public health: Limited updates and reforms for tobacco and sugar
There was no update on the public health grant for local authorities, which is now worth less in real terms than a decade ago. However, some reforms were announced to support public health initiatives:
- Tobacco Duty will continue to rise by 2% above inflation until 2029, with an extra 10% increase on hand-rolling tobacco.
- A new Vaping Products Duty will be introduced in 2026 to discourage vaping among young people.
- The Soft Drinks Industry Levy will be updated to keep incentives for reducing sugar content in soft drinks, with possible changes to the sugar content limits and milk drink exemptions.
What’s missing: Future plans and key details
Key plans, including the NHS Mandate and the 10-Year NHS Plan, are yet to be published. Additionally, some election pledges, such as improvements in dental care access, were not addressed in this budget.
Our response
The budget signals a positive step for health and social care. Increased funding will help support NHS operations, improve patient care, and address some key areas in social care. However, the full impact may be limited by ongoing cost pressures for providers and local authorities.
We recognise the dedication of NHS staff, managers, and services working tirelessly to support patients despite ongoing cutbacks and increasing pressures. Delivering quality care with limited resources is no easy task. Charities, volunteers, and carers are also selflessly caring and providing support for people who neet it most, often "plugging the gaps" when services fall short.
Healthwatch North Yorkshire thanks everyone across the health and care sector for their hard work and commitment. We will continue to advocate for the support and resources they need to deliver the best possible care for our people.
