NHS payment system

The Health and Social Care Act 2012 moved responsibility for pricing from the Department of Health, to become a shared responsibility for NHS England and Monitor.

Under the terms of the Act, NHS England has a duty to specify those healthcare services for which it thinks a national price should be used, and Monitor has the duty to set that price.  There is also provision for setting rules governing not only how nationally set pricing will work, but also how local price-setting must operate.

This legal framework means that the documents describing the payment system looks very different to those previously produced by the Department of Health.  There are new timetables and new processes for producing the National Tariff, including a statutory consultation and the right to object to the method used to set prices.  In all these arrangements, NHS England and Monitor are required to work closely together, developing the new funding system as partners.

While NHS medical services are free at the point of use for the patient, the system is taxpayer funded. The NHS Payment System must deliver more and better health care for the foreseeable future within the level of funding available.

This page brings together all relevant publications relating to our work on the NHS payment system, and signposts to other publications which will be of interest, for example relating to rewards and incentives.

Recent publications

Related links