Debate on the Estimate of the Department of Health and Social Care

The Estimate

Day-to-day spending (Resource DEL)

The DHSC proposes that Resource DEL (day-to-day spending) is set to increase by £9.6 billion, rising from £198.5 billion in 2024–25 to £208.1 billion in 2025–26. This represents a 4.9% year-on-year increase.

The main factors contributing to this increase include:

• £8.9 billion in additional funding, consistent with the commitments made in the 2024 Autumn Spending Review. This forms part of a broader £22.6 billion increase in day-to-day health spending over the two-year period covering 2024–25 and 2025–26. The funding is intended to support increased elective activity and progress toward the 18-week referral-to-treatment standard.
• £1.5 billion to accommodate changes in employer National Insurance contributions.
• £101.4 million net increase in funding transfers from other government departments. Transfers are expected to total £957.4 million in 2025–26, compared to £856.0 million in the previous year. These figures are provisional and may be revised in the Supplementary Estimate.

This increase is partially offset by the absence of a one-off £869.0 million reserve claim that was included in the 2024–25 budget to address NHS pressures not covered by the Autumn Budget 2024. This funding has not been carried forward into 2025–26.

Investment spending (Capital DEL)

DHSC Capital DEL (investment spending) is projected to rise by £2.0 billion, from £11.6 billion in 2024–25 to £13.6 billion in 2025–26, representing a 16.9% increase.

Key elements of this increase include:

• £1.8 billion in additional capital investment, as outlined in the 2024 Autumn Spending Review. This is part of a total £3.1 billion increase in capital health spending over two years.
• £127 million increase due to the removal of a capital credit that was applied in 2024–25 for pre-paid COVID-19 vaccines. This credit is not included in the 2025–26 opening budget.

Demand-led spending (Annually Managed Expenditure)

DHSC Resource AME (demand-led day-to-day spending) is set to increase by £1.2 billion, from £8.78 billion to £10.0 billion, a 13.9% rise. This increase is primarily due to changes in the Treasury’s discount rate, which affects the present value of long-term liabilities. These are non-cash adjustments and fall outside the department’s direct control.

The Capital AME is expected to decrease by £548 million, from £813 million in 2024–25 to £265 million in 2025–26, a reduction of 67.4%. This reduction is largely attributable to changes in provisions related to interim compensation payments associated with the Infected Blood Inquiry.

Policy background relevant to the DHSC Estimate

The full debate pack, available to download as a PDF using the buttons above and below this summary, provides policy and funding background, and a selection of commentary on the 2025 Spending Review.