The NHS have today announced that the elective care funding cap, initially proposed by the government and NHS England as a measure to control costs, has been scrapped. Sir Jim Mackey, CEO of NHS England, confirmed the decision to cancel the proposed cap in a letter to health service leaders.
The letter said, “We will soon publish the response to the consultations on the NHS Standard Contract and payment rules for 2025-26. These will introduce a more flexible approach to planning elective activity, including scrapping the elective payment limit and enhancing activity management provisions within the contract."
This decision reversal will be welcomed by NHS Trusts, who now have more clarity regarding their funding for the 25/26 financial year to be able to deliver activity plans. This announcement also further stresses the continued importance of the accuracy of Trusts coded activity data in order to avoid missing income for elective care.
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