On March 13, 2025, the Government announced the abolition of NHS England. The Government says this move is being made to streamline healthcare management by integrating NHS England’s functions directly into the Department of Health and Social Care (DHSC) and it ‘will reduce bureaucracy, make savings and empower NHS staff to deliver better care for patients’.
What will change?
Since its establishment in 2013, NHS England has been responsible for overseeing the budget, planning, and day-to-day operations of the NHS in England. Its dissolution signifies a shift towards a more centralised approach, with the DHSC assuming direct responsibility for these functions.
The Government believes that this change will eliminate duplication, reduce administrative overheads, and increase accountability, ultimately freeing up resources for frontline patient care.
How will this impact procurement?
Integrated Care Boards (ICBs), which coordinate local health services, will experience changes in their management structure as a result of the dissolution of NHS England. The DHSC will take over the role of holding ICBs accountable. Having said this, those who deal with the ICBs should not notice any difference, apart from delays in some NHS contracts going out to tender, as staff across NHS England and ICBs face significant disruption.
The absorption of NHS England’s responsibilities into the DHSC means that local ICBs may have increased autonomy over procurement decisions. This could allow for more region-specific health service adaptations but might also lead to inconsistencies in the availability of medical treatments across different areas – despite the aim of abolishing NHS England being to centralise operations.
It is worth mentioning that the biggest change to NHS procurement this year is through the Procurement Act 2023, which came into effect in February 2025, and will still apply to NHS tenders relating to goods and non-healthcare services. The procurement of healthcare services by NHS England, ICBs and NHS trusts falls under the Provider Selection Regime (PSR).
Timeline and implementation
The target date for completing the abolition of NHS England and consolidating its functions into the DHSC is October 2026. This two-year transition period is designed to ensure a smooth handover of responsibilities and minimise disruption to healthcare services.
Useful links for more information:
https://www.nhsconfed.org/publications/abolishing-nhs-england-what-you-need-know
https://www.kingsfund.org.uk/insight-and-analysis/blogs/reshaping-nhs-national-bodies-started-finish
If you need support with bidding for NHS tenders, get in touch with our team on call 0330 133 8823 or email info@klowconsulting.com.