Michael Burton 01 June 2021

Health spending rises by record quarter

Health spending rises by record quarter image

Spending on taxpayer-funded health services rose by a record 25% to £220bn last year as the NHS battled with pandemic costs, according to latest estimates from the Office for National Statistics (ONS).

The increase was more than six times the average 4% a year growth in NHS spending that has occurred since 1997.

As a proportion of gross domestic product (GDP) healthcare spending rose from 10.2% in 2019 to 12.8%, partly because GDP fell during the lockdowns.

Taxpayer-funded health spending represented 82% of all healthcare spend.

Test and trace cost £22bn for the year ending March 2021 and the vaccination programme another £5bn.

On average, 8% of total beds and 24% of mechanical ventilator beds were occupied by COVID-19 patients in England between April and December 2020.

There were also COVID-19 costs in social care, with an extra £3.3bn funded by local government to September 2020.

Final figures for 2019 published by the ONS showed that before the pandemic the increase in spending on the NHS was running at 4%.

NHS-funded long-term care grew by 2.5% in real terms in 2019, compared with growth in local authority-funded long-term social care spending of 4.2%.

However, total long-term care spending by the NHS, which funds help for patients with chronic conditions, grew by less than the increase in health spend, the ONS said.

Total spending on long-term care in 2019 was £50.5bn, an increase on 2018 of 2.8% in real terms.

In 2019 the taxpayer funded 79% of healthcare spending or £176.8bn and the real terms average annual rate of growth in government-financed healthcare expenditure from 1997 to 2019 was 4%.

SIGN UP
For your free daily news bulletin
Highways jobs

Lead HR Consultant

Blackburn with Darwen Borough Council
Grade H, SCP 29 - 33, £37,336.00 - £41,418.00 per annum
Are you working in HR and feel ready to progress into management? Blackburn, Lancashire
Recuriter: Blackburn with Darwen Borough Council

Director of Resources (Section 151 Officer)

Rossendale Borough Council
Up to £90,000
Rossendale Borough Council is an effective and ambitious council Rossendale, Lancashire
Recuriter: Rossendale Borough Council

Housing Enforcement Officer

West Northamptonshire Council
£40316 - £43675
West Northamptonshire Council is currently seeking to appoint a Housing Enforcement Officer to join its successful Private Sector Housing Team. The Housing Enforcement Officer will have a varied workload across reactive private sector housing complaints, Northampton
Recuriter: West Northamptonshire Council

Technical Officer

Ashfield District Council
£29,777 - £32,076 per annum (pay award pending)
Do you have what it takes to be part of the solution? Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

PWT/Labour Support

Telent
Negotiable
You will be carrying out PWT (Protection Worker on the Track) duties and protect staff whilst on or about the track during engineering hours and to as England, London, City of London
Recuriter: Telent
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.