Integrated Care Boards: Operating Costs
The question
To ask the Secretary of State for Health and Social Care, what assessment his Department has made of the potential impact of the abolition of NHS on the capacity of ICBs to cut their running costs.
Answered by Karin Smyth
NHS England has asked the integrated care boards (ICBs) to act primarily as strategic commissioners of health and care services, and to reduce the duplication of responsibilities within their structures, to achieve a 50% cost reduction in their running cost allowance. NHS England provided additional guidance to ICBs, National Health Service trusts, and NHS foundation trusts on 1 April 2025. In this guidance, ICBs are tasked with developing plans by the end of May setting out how they will manage their resources to deliver across their priorities. NHS England will be working closely with ICBs to support the development of these plans, ensuring that their implementation reduces duplication and supports patient care. Further information is available at the following link:
https://www.england.nhs.uk/long-read/working-together-in-2025-26-to-lay-the-foundations-for-reform/
In his letter to ICBs, Sir Jim Mackey committed to greater transparency and moving back to a fair shares allocation policy over time.
As we progress with returning functions to the Department, a comprehensive assessment of any impacts and risks associated with the change will be conducted. We will ensure our decisions are guided by evidence and focused on improving patient care.
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