NHS England abolition – impact on the VCSE Sector 

19 March 2025
Doctor chats to patient

On 13 March, plans were announced to dissolve NHS England over the next two years, integrating its functions into the Department of Health and Social Care (DHSC). This aims to streamline governance, reduce bureaucracy, and cut administrative costs, including a 50% workforce reduction across NHS England and DHSC.

Impact on the VCSE Sector and ICS-VCSE Alliances

The plan to dissolve NHS England presents both risks and opportunities for the voluntary, community, and social enterprise (VCSE) sector.

Key Risks:
  • Reduced VCSE engagement: workforce cuts in Integrated Care Boards (ICBs) may limit collaboration and influence.
  • Funding pressures: Cost-cutting measures could reduce investment in VCSE-led services, despite their crucial role in addressing social determinants of health.
  • Shifting Priorities: the restructuring may lead to statutory services dominating decision-making, potentially sidelining the VCSE sector.
Opportunities:
  • Stronger local partnerships: decentralisation could enable VCSE organisations to co-design health and care solutions.
  • Alignment with NHS priorities: the government’s focus on prevention and community care aligns with VCSE expertise, offering partnership opportunities.
  • Increased VCSE leadership: if resources shift from hospitals to community care, our sector could take on a more prominent role -provided funding supports this transition.
Next steps

With our roles leading the North Yorkshire VCSE Health Assembly and partnerships with ICBs in the region, we will be advocating for the VCSE sector’s role in shaping health and care decisions by:

  • Continuing to strengthen partnerships with ICBs to maintain collaboration and influence
  • Highlighting the VCSE’s impact on health outcomes to secure investment and sustainability.
Conclusion

The NHS restructuring poses challenges, but proactive engagement from our sector can ensure its role remains integral to health system transformation. We will continue to work strategically to maintain representation and secure resources for community-based care and will provide further updates.

If you have any questions about restructuring of NHS England and the impact on our sector, please contact Dena Dalton, Head of Health Collaboration at Community First Yorkshire.

Find out how to get involved with the North Yorkshire VCSE Health and Care Assembly and add your voice about health and care services.