Source · Select Committees · Public Accounts Committee
Recommendation 7
7
Acknowledged
Department plans "smaller and leaner" headcount reduction without specifying exact numbers.
Conclusion
We asked the Department about reports that its headcount would also be cut by 50%. The Department told us that it aimed to become “smaller and leaner”. It said that it was not in a position to put a number on the reduction in size of its headcount, confirming only that there would be a reduction. The Department told us that it had announced a voluntary exit scheme in early March 2025 and that it was also operating a cap on new external appointments. It anticipated that these actions would equate to savings worth £15 million per year which could then be used for frontline services.10
Government Response Summary
The government agrees with the observation, describing ongoing work to create a single new organization and develop staff transfer plans. Specific headcount information is likely to be confirmed in Autumn 2025, with further details provided to the Committee Chair in July 2025.
Government Response
Acknowledged
HM Government
Acknowledged
1.1 The government agrees with the Committee’s recommendation. Target implementation date: August 2025 1.2 The Department of Health and Social Care (the department) is carefully considering lessons learnt from previous organisational changes as it takes forward the programme to create a single new organisation. 1.3 The reforms are designed to address the failures of the 2012 NHS restructuring, reducing bureaucracy and duplication to improve care delivery. Equally, the government is also building a new organisation that can deliver on the Health Mission and 10 Year Plan, through enabling and supporting the health and care system and those who lead it locally. 1.4 The department has assessed the current functions across both organisations, agreed a senior structure for the future department, and is developing its plans for the transfer of staff from NHS England to the department. The department is committed to transparency throughout this process and, in keeping with this, has shared this information with staff across both organisations. The department has also written to the Committee Chair on the 7 July 2025 to describe these plans in more detail. 1.5 Information relating to the size of resource functions is likely to be confirmed in Autumn 2025.