Source · Select Committees · Public Accounts Committee

Recommendation 24

24 Deferred

Overall NHS productivity remains low despite increased elective activity and community investments.

Conclusion
Despite carrying out 15% more elective activity than before the pandemic, the NHS is less productive overall once the activities of mental health trusts, community trusts and GPs are considered.42 NHSE told us that, while government has had a long-term aim to shift more care and services into local communities, funding increases for these services had often been slow.43 However, it highlighted how recent capacity investments had been in community services rather than hospitals, for example in 12,500 virtual ward beds in people’s homes, and had focussed on the data and technology needed to support moving more care into the home.44 NHSE acknowledged 38 Q 37 39 C&AG’s Report, paras 4.15 to 4.16 40 C&AG’s Report, para 2.12 41 Q 48 42 Q 12 43 Q 37 44 Q 29 15 that there would have been more investment and progress in enhancing community services in 2023–24 had it not been obliged to redirect funding to prop up the day-to-day spending of local NHS systems.45 NHSE recognised there may be value in considering whether best use is currently being made of the Better Care Fund, intended to support joint working between the NHS and social care, and assessments of continuing healthcare needs outside of hospitals. NHSE said a review of the Better Care Fund might sensibly re-evaluate the structures that currently surround the fund and the content of what its money is being spent on. NHSE reported that it was increasingly seeing improved system working at local level, particularly regarding annual planning processes.46 However, DHSC acknowledged that there were still many problems underlying joint working between health and local authorities, primarily due to having to integrate a service that answers nationally to ministers and a service that answers locally to councillors, with significant variation evident across the country.47 Switching to digital
Government Response Summary
NHSE, with DHSC, is focusing on enabling a greater shift from hospital to community – including considering how funding decisions over coming years can support this through the 10 Year Health Plan and the multi-year Spending Review. This recommendation is therefore under consideration and The Committee will be notified of the response when it is confirmed.
Government Response Deferred
HM Government Deferred
6.2 NHS investment in primary medical care and community services (including continuing care) increased faster than overall ICB spend in 2023-24. 6.3 DHSC and NHSE have prioritised mental health in its plans for 2025-26, requiring ICBs to meet the Mental Health Investment Standard. To continue to reform and improve mental health services and improve value for money for the taxpayer, all mental health providers will be asked to submit, implement and report against a plan to enhance productivity during 2025- 26. 6.4 In 2025-26 funding through the Better Care Fund is also being maintained, as set out in published revenue and contracting guidance. 6.5 Through the 10 Year Health Plan and the multi-year Spending Review, NHSE, with DHSC, is focusing on enabling a greater shift from hospital to community – including considering how funding decisions over coming years can support this. This recommendation is therefore under consideration. The Committee will be notified of the response to this recommendation when it is confirmed.