How much does the UK spend on health?

The UK spent £317.4 billion on healthcare in 2024 — equivalent to roughly £4,700 for every person in the country. In nominal terms, that figure has nearly quintupled since 1997. Even adjusting for inflation, real-terms spending has more than doubled.

The trajectory has three distinct phases. The Blair–Brown years (1997–2010) saw sustained double-digit growth as the NHS received its most generous funding settlement in history. The austerity decade (2010–2019) brought the slowest sustained growth since the NHS was founded. Then COVID-19 drove a sudden, enormous spike — with spending jumping from £252 billion in 2019 to £317 billion by 2024.

Who pays

Around three-quarters of UK healthcare spending is government-funded — overwhelmingly through general taxation and National Insurance. The rest comes from out-of-pocket payments (prescriptions, dentistry, optical), private insurance, charities, and employers. The government's share has grown over time, particularly during the pandemic when emergency spending dwarfed the private sector.

Out-of-pocket spending — what individuals pay directly for prescriptions, dental care, and optical services — has risen from £13 billion in 1997 to £50 billion in 2024. That growth reflects both rising charges and expanding demand for private dental and optical care, but as a share of total spending it has remained relatively stable at around 14–16%.

What it buys

The largest category is curative and rehabilitative care — hospital treatment, GP consultations, outpatient clinics — which accounts for £177 billion, or nearly 60% of total current spending. Long-term care (community nursing, mental health, social care) takes £57 billion, and medical goods (pharmaceuticals, devices) account for £34 billion.

Preventive care — screening, vaccination, public health campaigns — receives just £17 billion, around 5.5% of total spending. That ratio has barely shifted in a decade, despite growing evidence that prevention delivers better value per pound than treatment.

Health spending as a share of the economy

Perhaps the most revealing measure is healthcare spending as a percentage of GDP. In 1997, the UK devoted 6.9% of GDP to health. By 2023, that figure had risen to 11.0%. The COVID years saw a dramatic spike to 12.1% as emergency spending surged while the economy contracted.

This trajectory is not unique to the UK. Across developed economies, health's share of GDP has grown relentlessly — driven by ageing populations, advancing medical technology, rising expectations, and the growing prevalence of chronic conditions. The question is not whether to spend more, but whether each additional pound is buying better outcomes.

What this means

For anyone working in healthcare — whether developing medical technology, planning commissioning strategy, or building a case for investment — these numbers provide essential context. A £317 billion market is vast, but the distribution is uneven. Most spending flows through a small number of large categories: hospital care, GP services, pharmaceuticals. Understanding where the money goes is the first step to understanding where opportunity exists.

The shift toward 11% of GDP also means health spending is increasingly a macroeconomic question. Every percentage point of GDP devoted to healthcare represents roughly £27 billion — money not available for education, infrastructure, or tax reduction. The political and economic constraints on further growth are tightening, which makes efficiency, innovation, and evidence-based allocation more important than ever.