Who pays for the NHS – and how much does it cost?
You do .. and alot .. via general taxation, National Insurance and user charges.
General taxation accounts for most of the funding (81%) whilst National Insurance provides 18%, and patient charges (prescription and dental) 1%. The amount of funds allocated to the NHS each year is determined by central government.
In 2024-25, the NHS is costing about £180 billion, of which NHS England will receive £165 billion. This equates to about 10% of GDP, i.e. 10% of your hard earnt taxes.
The government distributes these funds to the Department for Health and Social Care (DHSC; then on to NHS England) and the NHS in Scotland, Wales and Northern Ireland. In 2018/19 health services expenditure per head was highest in Northern Ireland per year (£2,436) and lowest in England (£2,269). Funds are distributed to the devolved nations according to the Barnett Formula.
Most would consider these prices as good value for money, especially when compared to the USA, where the average cost of private health insurance, which most people have, is about £4,000 a year. In the UK, it is estimated about 10% of the population is covered by private medical insurance, but most use the NHS as their primary provider.
Summary
We have described who pays for the NHS – and how much does it cost (you, and alot). The NHS is currently performing badly so being ‘good value for money’ is no longer enough for the British public. We are very sorry its is under-performing and will do our very best to improve.
Last Reviewed on 19 April 2024