NHS drugs spending rising five times faster than funding

NHS spending on drugs is rising at five times the rate its budget is rising, leading to funding pressures that could see access to medications threatened, a think tank has warned.

The King’s Fund said increased prescribing of cheap drugs such as statins, and less common but expensive cancer treatments had seen spending on drugs soar from £13 billion in 2010-11 to £17.4 billion in 2016-17. The rise – an average growth of 5per cent a year – contrasts with an average rise of 1per cent to the NHS budget over the period.

The think tank said attempts to cut the bill, such as restrictions on drugs costing the NHS more than £20million a year, could see the health service “returning to the Nineties”, with patients increasingly denied access to drugs.

It came as an independent review by Lord Darzi, the former health minister, warned that by 2030 the NHS would need more than £50 billion extra a year, to meet expected demand. This would see funding rise from its current £123 billion a year to £173 billion by 2030 – around £4billion extra a year.

The report, commissioned by the Institute for Public Policy Research, said social care services would need an extra £10billion a year by 2030 to cope with rising demand, warning that even these sums would require a major boost in productivity.

The Prime Minister is expected to announce a funding increase for the NHS later this year, as part of a longterm funding plan. A Green Paper on social care will set out options to pay for care of the elderly, which the Health Secretary said would include a “cap” on costs.

Lord Darzi said the health service had endured the most austere decade in its history and was in “financial distress”. “While the prospect of a longterm funding settlement is welcome, it is vital that it delivers enough money to meet the demands of the decade ahead. Funding the NHS while social care falls over is not an option,” he said.

Lord Prior, the former Tory health minister and vice-chairman of the review, urged the Government to take heed of the report. “Health and social care is facing a perfect storm, with the needs of a growing and ageing population rising faster than the available resources,” he said.