NHS England (NHSE) will be scrapped and brought back into the Department of Health and Social Care (DHSC) 'to put an end to the duplication resulting from two organisations doing the same job', the government has said today.

Prime Minister Sir Kier Starmer set out major reforms today, which will include the dissolution of NHSE – the world's largest quango.

'Work will begin immediately to return many of NHS England’s current functions to the Department,' the government said.

'A longer-term programme of work will deliver the changes to bring NHS England back into the department,' it added.

This could deliver 'hundreds of millions of pounds a year' in savings that will then be reinvested in frontline services, the government said.

'By stripping back layers of red tape and bureaucracy, more resources will be put back into the front line rather than being spent on unnecessary admin,' it added.

Sir James Mackey, who is due to be taking over as transition chief executive of NHS England, said bringing the two organisations together would 'deliver the biggest bang for our buck for patients, as we look to implement the three big shifts – analogue to digital, sickness to prevention, and hospital to community – and build an NHS fit for the future'.

Health and social care secretary, Wes Streeting, said: 'When money is so tight, we can’t justify such a complex bureaucracy with two organisations doing the same jobs.

'We need more doers, and fewer checkers, which is why I’m devolving resources and responsibilities to the NHS frontline.

'NHS staff are working flat out but the current system sets them up to fail. These changes will support the huge number of capable, innovative and committed people across the NHS to deliver for patients and taxpayers.

'Just because reform is difficult doesn’t mean it shouldn’t be done. This government will never duck the hard work of reform. We will take on vested interests and change the status quo, so the NHS can once again be there for you when you need it.'

The reforms also aim to 'realise the untapped potential of the NHS as a single payer system, using its centralised model to procure cutting-edge technology more rapidly, get a better deal for taxpayers on procurement, and work more closely with the life sciences sector to develop the treatments of the future', the government has said.

Funding negotiations between NHSE, DHSC and Community Pharmacy England (CPE) are still ongoing.

Commenting on the announcement, Dr Leyla Hannbeck, chief executive of the Independent Pharmacies Association (IPA), said: 'Any reforms that reduce bureaucracy and streamline administration in the healthcare system are welcome.

'However, the test for these reforms will be whether cost savings can be channeled back into frontline patient care.

'The focus of this Government must be investing in the 'front door' of healthcare and primary care services such as pharmacies.

'A reorganisation of the NHS should prioritise this aim, not distract from it.'

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