NHS England has reported that agency spend almost halved during 2025/26, falling from £2.1 billion to £1.2 billion.

The figure was published in NHS England’s Month 12 Financial Position 2025/26 paper, included in the public Board papers for the 4 June 2026 meeting.

Key Developments

NHS England reported that agency spend fell from £2.1 billion in 2024/25 to £1.2 billion in 2025/26.

The reduction was listed as one of several improvements in financial performance during the year.

The Month 12 paper also reported that the NHS ended 2025/26 with a £70 million national underspend.

NHS England stated that the number of organisations delivering plan increased from 70% to nearly 80%.

The level of overspend in frontline organisations reduced by more than one third.

Efficiency delivery increased from £8.6 billion in 2024/25 to £10.2 billion in 2025/26.

However, NHS England also reported that systems delivered a £563 million deficit within the overall national position.

The paper said system overspends were largely driven by slippage against efficiency plans, including workforce costs above planned levels.

Industrial action in July 2025 was also cited as having adversely affected system positions because of increased staff cover costs during strikes.

Why It Matters

Agency spend is a significant workforce and finance measure for NHS providers, integrated care boards and system leaders.

The reported reduction from £2.1 billion to £1.2 billion indicates a material tightening of temporary staffing controls during 2025/26.

The figure also provides a concrete example of the wider financial grip described in NHS England’s Month 12 position, which reported a national underspend and improved delivery against financial plans.

However, the paper also shows that workforce costs remained a source of pressure. NHS England identified workforce costs above planned levels as one of the factors contributing to system overspends.

This means the agency spend reduction should be understood within the wider context of workforce planning, productivity, safe staffing, rota resilience and financial discipline.

For providers and systems, the 2025/26 position highlights the continued need to reduce avoidable agency dependency while maintaining safe clinical capacity and service continuity.

Source Reference

• NHS England: Month 12 Financial Position 2025/26, 4 June 2026.