Government agency spend crackdown returns nearly £1bn to NHS frontline

Nearly £1bn has been put back into NHS frontline services after a Government crackdown on temporary staffing agencies. 

The Department of Health and Social Care set strict agency spending limits last November, with trusts told to cut agency staff spend by 30% so more funds could be invested in patient care and staff pay.

Latest figures showed agency staff spending dropped by almost £1bn in 2024/25. 

NHS trusts had previously spent £3bn on agency staff in 2023/24, with agencies charging up to £2,000 for a single nursing shift due to 113,000 vacancies across the service.

Health and Social Care Secretary Wes Streeting said: “The taxpayer has been footing the bill for rip-off agencies for too long – while patients have languished on waiting lists and demoralised staff faced years of pay erosion. 

“That’s why we are pledging to eliminate this squander, and through our Plan for Change we are making major progress and seeing a radical reduction in costs. 

“We’re already backing our health workers with above-inflation pay rises and now, nearly £1 billion is being reinvested back to the frontline, getting patients off waiting lists and putting money back into our workforce’s pocket.”

Elizabeth O’Mahony, chief financial officer at NHS England, said: “The NHS is fully committed to making sure that every penny of taxpayers’ money is used wisely to the benefit of patients and the quality of care they receive.