The Budget 2026-2029 said “increased expenditure against the health insurance fund means that the fund will be exhausted during the early 2030s unless action is taken soon”.
This is different to the position reported in the Government Plan 2023-2027, which forecast a surplus for each year of the plan and concluded that “the fund remains in good health over the medium-term”.
The government said ministers had been clear in the 2026 budget and beyond action was “needed to address long‑term pressures on health funding caused by increased treatments and enhanced support with health care costs”.
“Significant preparatory work has already taken place, and several of the C&AG findings and recommendations are already under way,” it said.
“This includes consideration of reform of the Health Insurance Fund as part of a whole health care system approach, rather than viewing the Health Insurance Fund in isolation.”
It said the new Health and Care Partnership Board would also assist in considering options to help inform future budgets.