According to new figures, NHS England spent £1 billion less on agency staff in 2024–25, following a pledge made by Wes Streeting
In November 2024, Secretary of State Wes Streeting announced a plan to curb the use of agency staff within NHS England, following reports that temporary staffing costs have reached £3 billion annually.
Wes Streeting proposed solutions to reduce agency use by 30%, including banning NHS trusts from using agencies to hire temporary entry-level workers in bands 2 and 3 and preventing NHS staff from resigning and then immediately offering their services back to the health service through a recruitment agency.
NHS trusts spent nearly £1 billion less on agency staff in 2024–25 compared to the previous year
In a letter dated 29 April 2025, Professor Chris Witty wrote to the Chair of the Public Accounts Committee, highlighting that NHS reliance on expensive agency staff is a major driver of inefficiency. However, agency spending dropped from £3.5 billion (2022/23) to £3.0 billion (2023/24), with a target of £2.1 billion in 2024/25.
Furthermore, NHS trusts are expected to reduce agency spending by 30% and bank staffing costs by 10% in 2025/26, alongside implementing stricter controls on off-framework and inappropriate staffing expenses. Meanwhile, acute sector productivity has increased by just over 2% annually since 2022/23, with a forecasted growth of 2.7% for 2024/25, driven by changes in care models such as shorter hospital stays and increased same-day discharges.
Elizabeth O’Mahony, NHS England’s chief financial officer, told the Guardian: “The NHS is fully committed to making sure that every penny of taxpayers’ money is used wisely to the benefit of patients and the quality of care they receive.
“Our reforms towards driving down agency spending by nearly £1bn over the past year will boost frontline services and help to cut down waiting lists while ensuring fairness for our permanent staff.”
Recruitment agencies charged NHS Trusts up to £2,000 per nursing shift
Previous figures revealed that recruitment agencies have charged NHS trusts up to £2,000 for a single nursing shift, driven by the critical shortage of 113,000 staffing vacancies across the service. This heavy reliance on expensive temporary staff has placed immense financial strain on the NHS budget, diverting resources away from patient care and long-term workforce development.
Julian Kelly, NHS Chief Financial Officer, speaking in November 2024, said: “The NHS is committed to ensuring every penny of taxpayer money is used wisely to the benefit of patients and to ensure fairness for our permanent staff. While agency spending is at a record low, with trusts on track to save £1 billion over 2 years, we want to go further still.
That’s why the NHS, working alongside the government and providers, will launch a consultation to stop the use of agencies to fill entry-level posts, building on the approach we have successfully imposed for administrative and estates staff.”
Health and Social Care Secretary Wes Streeting, speaking in November 2024, said: ” For too long, desperate hospitals have been forced to pay eye-watering sums of money on temporary staff, costing the taxpayer billions, and pulling experienced staff out of the NHS. We’re not going to let the NHS be taken advantage of anymore.
Last month, the Chancellor made a historic investment in our health service, which must reform or die. This investment is a significant step towards addressing the financial challenges the NHS is facing. I am determined to ensure the money is well spent and delivers benefits to patients.
These changes could help keep staff in the NHS and make significant savings to reinvest in the frontline.”
