Productivity update: acute productivity up 2.4% at M3
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Acute providers delivered 2.4% productivity growth at Month 3 (M3) year-to-date in 2025/26, compared with the same period in 2024/25, according to papers presented to the NHS England Board in February 2026.
The figure is reported in the Integrated Performance Report and referenced in the accompanying Productivity Plan update.
National productivity expectation
The Productivity Plan update reiterates the government’s expectation of 2% productivity growth, positioning current performance within that broader requirement.
The paper describes a multi-year ambition to:
- Close the gap back to 2019/20 productivity levels
- Reduce variation between providers
- Deliver further gains through operational and digital improvements
The 2.4% M3 figure is presented as part of this trajectory.
Contributing factors referenced in the paper
The Productivity Plan update refers to several areas linked to productivity improvement, including:
- Improved job planning compliance
- Reduced reliance on temporary staffing
- Targeted provider-level opportunity packs
- Alignment of efficiency factors within payment arrangements
The paper notes that productivity gains associated with technology require workflow redesign and implementation discipline.
No provider-level breakdown of the 2.4% figure is provided in the February summary paper.
Financial and oversight context
The productivity update sits alongside the Month 9 financial position paper, which reiterates the requirement for systems to deliver their financial plans and references Deficit Support Funding (DSF) arrangements for systems not on track.
The February Board pack frames productivity growth as integral to financial balance and planning discipline for 2025/26 and 2026/27.
Sources
- NHS England. Integrated Performance Report, Board Paper, February 2026 (Item 4.1).
- NHS England. Productivity Plan – Update, Board Paper, February 2026 (Item 5).
- NHS England. Month 9 Financial Position 2025/26, Board Paper, February 2026 (Item 4.2).
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15 Jun 2026 | Leave a comment
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