Reform Bulletin

12 March 2008

Bulletin - 12 March 2008

Key points

1. One health pound in four is spent privately. New Reform research shows that the amount that households in the UK pay privately towards healthcare is much higher than previously thought. In 2005-06, UK households spent around £1,200 per year towards core medical services. In comparison, they spent £3,850 towards the NHS via taxation, so that one pound in four spent towards core healthcare is spent privately. Given this, the Department of Health’s policy that patients cannot “top-up” is not only unjustifiable but also obsolete.

1. One health pound in four is spent privately.

New Reform research shows that the average household is spending around £1,200 a year privately on core areas of healthcare, including private hospital treatment, dentistry, optometry and over the counter medicines.

This number is likely to be an under-estimate of the total that is actually spent by individuals, as it does not include private spending figures on other core areas such as counselling and physiotherapy appointments.

ADDITIONAL AREAS OF EXPENDITURE

Alongside this spending on core medical services, families are investing additional money on improving their own health and lifestyles, through diet and exercise. At a low estimate, the average family spends around £383 on subjects such as gym and sports club membership as well as complementary therapies.