Monitor and NHS England publish 2016/17 National Tariff Payment System

23 March 2016

Monitor and NHS England publish the 2016/17 National Tariff Payment System. This comes into effect from 1 April 2016 and ends on 31 March 2017.

Commenting on the publication, Chris Hopson, chief executive of NHS Providers, said:

“Finally, after five years of an NHS tariff with undeliverable savings assumptions, which has played a key role in driving the NHS provider sector into a near £3 billion annual deficit, providers are set a realistic headline 2% efficiency factor. However, we should be under no illusions on how difficult the task for the provider sector in 2016/17 will be. Despite the welcome uplift to tariff prices next year and the extra £1.8 billion of sustainability funding, our members tell us that, following the control totals exercise, they are still facing extremely stretching savings targets that carry significant risk. Our latest view is that there will still be a provider sector deficit of at least £500 million by the end of next year.

NHS England and Monitor must continue supporting development of new payment options, in particular for mental health services and new models of care

“2016/17 is a crucial year for the sector. NHS trusts and foundation trusts are being asked to return to balance and improve quality and access targets. A more realistic tariff was essential in supporting providers to deliver this task. It is particularly important that CCGs use the increased tariff settlement to support mental health and community services that will not receive sustainability funding."

Read full press statement