National Health Service Act 1977

The National Health Service Act 1977 (c. 49) is an act of the Parliament of the United Kingdom that sought to remove private provision from the National Health Service in England and Wales.^[1]

The Labour Party manifesto for the 1974 general election had included a pledge to abolish pay beds in the NHS. Barbara Castle, who had been made Secretary of State for Social Services in 1974, stated in the 1975 Queen's Speech debate that, 'The existence of pay beds, with the opportunity it gives to a few senior doctors to make private gain and the opportunity it gives to patients with money to jump the queue, is seen as a bitter affront to those thousands of other staff who are dedicated to the principle of a free health service.'^[1]

The abolition of private provision in the NHS met with opposition from some doctors who saw it as a threat to their independence and private income. Castle was also pushing to incentivise consultants to commit full time to NHS work (rather than part-time alongside private work) in their contract negotiations.^[1]

Harold Wilson asked Lord Goodman to mediate between Castle and the medical profession. He also established a Royal Commission on the National Health Service in 1975.^[1]

In response to the financial challenges the NHS faced under Castle at a time of economic instability, she established the Resource Allocation Working Party to lessen the differences in health spending in England between the north and the south.^[1]

Castle was removed from the cabinet by James Callaghan in 1976 and was succeeded at the Department of Health and Social Security by David Ennals. He successfully navigated the National Health Service Act 1977 through the House of Commons, which separated private and NHS facilities and sought the gradual removal of provision for private patients in NHS hospitals. However, the provisions relating to pay beds were repealed by the incoming Conservative government in the Health Services Act 1980.^[1]

• National Health Service Reorganisation Act 1973