NHS England has confirmed the cost uplift arrangements for NHS Standard Contracts for 2026/27, including those held by VCSE organisations delivering NHS-funded services.
While formal communications to providers will follow from commissioning teams, partners have shared early information with infrastructure organisations so that the VCSE sector is aware of the direction of travel.
What has been confirmed
The National Payment Scheme for 2026/27 sets a Cost Uplift Factor (CUF) of 0.03% across NHS contracts after national efficiency requirements have been applied.
Alongside this, an additional 2% uplift has been allocated locally to community provider contracts as part of wider investment in community-based health services.
This means that VCSE organisations delivering services under NHS Standard Contracts or grants will receive a 2.03% uplift overall as an interim value from 1 April 2026.
This uplift is intended to support providers as the health and care system continues shifting resources into community settings and developing Integrated Neighbourhood Health models.
Potential further updates
There are ongoing national discussions regarding the final Cost Uplift Factor, particularly in relation to NHS pay awards.
Because of this, contracting teams are currently holding off on issuing formal letters to providers while discussions continue.
If a revised CUF is confirmed later in the year, it is expected that any additional uplift would also be applied retrospectively to 2026/27 contract values. Providers would then be contacted by their contract leads with updated invoicing or purchase order arrangements.
Investment in community services
The uplift sits alongside a wider 6.2% allocation for community providers, which has been distributed as follows:
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2% applied directly to contracts, including VCSE providers
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4.2% held locally by Places to support investment proposals and the development of community and neighbourhood services
Local partners have been encouraged to consider the role of the VCSE sector within this remaining allocation as plans are developed.
Jointly funded contracts
Where services are funded jointly by multiple commissioners, uplift arrangements may vary.
In these cases, commissioners will consider uplifts on a case-by-case basis depending on funding arrangements and the proportion of NHS funding involved.
Why this matters for VCSE organisations
Many VCSE organisations deliver critical services within the health and care system, often under NHS Standard Contracts or grant agreements.
The confirmation that uplifts will apply to VCSE providers alongside NHS community providers reinforces the principle that the sector is an essential partner in delivering neighbourhood health services.
It also provides some early clarity for organisations planning their budgets for the 2026/27 financial year.
