Thanks to the government’s reforms, record capital investment and the hard work of NHS staff, the NHS continues to outperform its productivity target of 2%
NHS productivity has grown by 2.4% in the first four months of this financial year (April to July 2025) compared to the same period last year, the latest NHS figures show.
Thanks to the government’s reforms, record capital investment and the hard work of NHS staff, the health service continues to outperform its productivity target of 2%.
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The figure, which is based on the output of treatments, operations and appointments, shows care is being delivered more efficiently, so patients can get the treatment they need sooner at better value for taxpayers.
It builds on the 2.7% increase between April 2024 and March 2025 – and is significantly above the long-term trend for health productivity (0.6%), showing the NHS is making strong progress in its recovery and is on track to meet its productivity commitments, despite working through record waiting lists, seasonal pressures and industrial action.
This has been achieved through more same-day discharges, shorter hospital stays, better use of technology, reduced reliance on agency staff, reductions in back office staff to reinvest funds in the front line, improved staff retention, and more surgical hubs and community diagnostic centres running evening and weekend appointments.
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Health and Social Care Secretary Wes Streeting said:
The 2.4% growth rate is calculated by NHS England using the most robust methodology available, taking a granular approach and focusing on the acute sector where data quality is strongest.
NHS England’s measurement methodology is more reliable than alternative approaches because it uses established, quality-assured acute sector data.
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Productivity is measured across both staff and non-staff inputs and weighted by how complex and demanding a treatment is to deliver (for example giving more weight to brain surgery than cheaper, more routine procedures), giving a comprehensive view of efficiency improvements rather than simple activity counts.
To track progress, a new Productivity Index is being developed – overseen by Andy Haldane, former Chief Economist at the Bank of England - to hold local NHS systems to account and ensure patients see the benefits directly.
Notes to Editors