The NHS financial and revenue framework, released alongside the 2025/26 operational planning guidance, sets out how Integrated Care Systems (ICSs) and providers should manage financial planning, contracting, and resource allocation to achieve financial sustainability.
Key highlights:
- ICSs must achieve financial balance within NHS England’s resource limits, with deductions applied for failures to submit and deliver breakeven plans.
- Base growth is set at 4.4%, with a 2.0% efficiency requirement and 4.15% cost uplift factor, including 2.8% pay growth.
- The NHS Payment Scheme introduces payment limits for elective services, price uplifts to encourage activity, and pilots for new payment models.
- Service Development Fund (SDF) ringfences are largely removed, with more funding integrated into ICB core allocations, although with an overall reduction to support financial balance.
- Mental health and specialised service commissioning is delegated to ICBs, with funding aligned to meet growth and investment standards.
Read the full snapshot below:
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Click here to read the full Revenue finance and contracting guidance for 2025/26.
