How is the money spent?

The NHS is one of the largest employers in the world, and staff costs account for two-thirds of all expenditure. About one tenth of the budget, some ₤4 billion, is spent each year on medicines.

In terms of spending on patients, more than two-fifths of total hospital and community health services expenditure, is on people aged 64 and over, while they make up just 16 per cent of the population.

The pie chart on the left shows spending in terms of different services:

· Hospital and Community Health Servicesprovide hospital care and a wide range of community services

· Family Health Services (FHS)provide general medical, dental, pharmaceutical and some ophthalmic services, and covering the cost of medicines prescribed by GPs

· Central Health and Miscellaneous Servicesprovide services which are most effectively administered centrally such as welfare food (such as free milk and vitamins for the children of families on Income Support) and support to the voluntary sector

· The administrative costs of the health departments are included under Departmental Administration.