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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Director of Finance Deputy Section 151 Officer

East Riding of Yorkshire Council
£106,554 - £116,305
Help shape the future of one of England’s largest unitary councils. Beverley, East Riding of Yorkshire
Recuriter: East Riding of Yorkshire Council

Integrated Front Door Social Worker

Cheshire East Council
£40,444 - £43,149 per annum
Be part of a service that makes a real difference to children and families at the earliest stage of support! Crewe, Cheshire
Recuriter: Cheshire East Council

SEND Caseworker

Cheshire East Council
£40,444 - £43,149 per annum
We’re on a meaningful journey in Children’s Social Care and we’d love for you to be part of it. Crewe, Cheshire
Recuriter: Cheshire East Council

Teacher

Durham County Council
£32,916 - £51,048 MPS1 - UPS3
WHAT IS INVOLVED?  The team at Aycliffe Secure Centre provide a caring, trauma informed and aspirational environment for young people aged between 10 Newton Aycliffe
Recuriter: Durham County Council
Linkedin Banner