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The cost-of-living crisis is a household issue for the NHS

The increase in the UK cost of living has placed unprecedented pressure on operating budgets for NHS facilities and service-providers alike. An associate director at Archus outlines the ways NHS Estates and Facilities teams can address inflationary pressures, and protect service delivery standards, while maintaining the principles of partnership and social value.

The cost of living has been increasing across the UK since early 2021 and through 2022, placing unprecedented pressure on operating budgets for NHS facilities and service-providers alike. Dr Rachel Dick, FRICS, an associate director at Archus, outlines the ways NHS Estates and Facilities teams can address inflationary pressures in their FM supply chain, and protect service delivery standards, while maintaining the spirit and principles of partnership and social value.

The UK Consumer Prices Index (CPI) rose by 9.4% in the 12 months to June 2022, up from 9.1% in May. One way to understand a price index is to think of a very large shopping basket containing the goods and services typically bought by households. The price index estimates changes to the total cost of this basket. When we think of this ‘household basket’ in the context of our own lives, we might list food, transport, gas and electricity, property maintenance, and improvements etc. Scaled up, all these cost pressures exist for the delivery of hard and soft FM services across the NHS estate too.

Diseconomies of scale

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Upcoming Events

The Fire Safety Event 2024

National Exhibition Centre (NEC), Birmingham
30th April - 2 May 2024

Wales regional conference, exhibition and awards dinner 2024

International Conference Centre (ICC) Newport
28th - 29th May 2024

NAHFO National Conference 2024

Crowne Plaza Newcastle Upon Tyne
3rd - 5th June 2024

Design in Mental Health 2024

Manchester Central
4th - 5th June 2024

InstallerSHOW 2024

National Exhibition Centre (NEC), Birmingham
25th - 27th June

Healthcare Estates 2024

Manchester Central
8th-9th October 2024

Access the latest issue of Health Estate Journal on your mobile device together with an archive of back issues.

Download the FREE Health Estate Journal app from your device's App store

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