The NHS is currently undergoing a major restructuring, which includes the merger of NHS England with the Department of Health and Social Care, potentially leading to job losses for approximately half of NHS England's 15,300 staff.

In response to an anticipated £6.6 billion overspend this year, NHS England has mandated a 5% budget cut for all trusts, prompting widespread workforce reductions.

Matthew Taylor, CEO of the NHS Confederation, cautioned that the drastic savings requests could hinder efforts to address delays in patient treatment.

The NHS Confederation has reported that some trusts are budgeting up to £12 million for redundancies this year, while others are depending on natural staff turnover to manage workforce numbers.

Compliance with the budget cuts could result in job losses ranging from 41,100 to 150,700 across the NHS, which employs around 1.37 million people.

Several NHS trusts have already begun announcing significant job cuts; for instance, the Portsmouth and Isle of Wight trusts plan to eliminate 798 positions in an effort to save £39 million.

Sir Jim Mackey, the new CEO of NHS England, has directed 215 trusts to reduce their corporate functions costs by 50% by the end of 2025, affecting areas such as HR, finance, and communications.

NHS leaders are urging the Treasury to create a £2 billion fund to cover the costs associated with these job losses, as they currently lack the necessary financial resources.

The Department of Health and Social Care has stated that the restructuring aims to eliminate duplication and free up funds for frontline care, while also committing an additional £26 billion to health and social care.

Experts warn that while efficiency improvements are necessary, cutting corporate positions could undermine the NHS's overall ability to function effectively.

Despite the UK having one of the lowest administration costs among comparable countries, only 14% of the public believes the NHS manages its funds efficiently, according to Sarah Woolnough, CEO of the King’s Fund.