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NHS Explained: How the UK's Free Healthcare System Works, What It Covers, and Why It's in Crisis

News · July 22, 2026 · Daily Junction Editorial Team · 8 min

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The NHS provides free healthcare to 67 million people — here's how it works, what it covers, and why waiting lists have hit 7.6 million.

The NHS (National Health Service) is the UK's free healthcare system, providing healthcare to 67 million people (everyone living in the UK) funded by taxation (£165 billion per year, 20% of government spending). The NHS is free at the point of use — you do not pay when you see a doctor, go to hospital, or have surgery. You access the NHS through a GP (general practitioner) who refers you to specialists or hospitals — 90% of NHS contacts are GP appointments (300 million per year). The NHS covers: GP appointments, hospital treatment, A&E, maternity, mental health, and prescriptions (free in Scotland/Wales, £9.90 per item in England). But the NHS does not cover: dentistry (most adults pay £25-£300), opticians (most adults pay £20-£200), cosmetic surgery, or experimental treatments. The NHS is in crisis: 7.6 million on waiting lists, 110,000 staff vacancies, £7.5 billion deficit, with staff burnout and strikes over pay (real wages down 20% since 2010). Here is everything you need to know about the NHS — how it works, what it covers, and why it is in crisis.

What Is the NHS?

The NHS (National Health Service) was founded in 1948 by the Labour government (Health Minister Aneurin Bevan) to provide free healthcare to everyone, funded by taxation.

The founding principles

  1. Free at the point of use — no one pays when they use the NHS
  2. Based on need, not ability to pay — everyone gets the same care, regardless of income
  3. Comprehensive — covers all healthcare needs (GP, hospital, mental health, maternity)

These principles remain today, though the NHS has changed significantly (more private sector involvement, prescription charges, etc.).

How is the NHS funded?

The NHS is funded by taxation:

NHS budget (2024–25): £165 billion (20% of total government spending)

The average person pays £3,000–£5,000 per year in taxes that fund the NHS (depending on income).

Is the NHS really free?

Free at the point of use (you do not pay when you use it), but funded by taxation (you have already paid for it through taxes).

Exceptions (you may have to pay):

How the NHS Works

1. Register with a GP

To use the NHS, you must register with a GP (general practitioner) — a family doctor who is your first point of contact.

How to register:

GP services (free):

GP appointments: 300 million per year (90% of NHS contacts)

2. GP refers you to hospital or specialist

If you need specialist care (surgery, scans, consultant), your GP refers you to a hospital or specialist.

You cannot self-refer (except for A&E, sexual health, opticians, dentists).

Waiting times:

3. Hospital treatment

Hospital services (free):

Waiting times:

4. Prescriptions

Prescriptions are free in Scotland, Wales, and Northern Ireland. In England, you pay £9.90 per item (2024–25).

Exemptions (free prescriptions in England):

Prescription prepayment certificate: If you need regular prescriptions, buy a prepayment certificate (£32.05 for 3 months, £114.50 for 12 months) — unlimited prescriptions.

What the NHS Covers

Covered (free at point of use)

Not covered (you pay)

The Four NHS Systems

The NHS is devolved — England, Scotland, Wales, and Northern Ireland have separate NHS systems.

NHS England

NHS Scotland

NHS Wales

NHS Northern Ireland

The NHS Crisis

The NHS is in crisis:

1. Waiting lists (7.6 million)

7.6 million people are waiting for NHS hospital treatment (June 2024), up from 4.4 million pre-pandemic (February 2020).

300,000+ people have been waiting over 1 year (the NHS target is 18 weeks).

2. Staff shortages (110,000 vacancies)

The NHS has 110,000 staff vacancies (8% of the workforce):

Staff shortages are caused by:

3. A&E crisis

72% of patients are seen within 4 hours in A&E (target: 95%).

30,000+ people per month wait over 12 hours on trolleys (target: 0).

4. GP crisis

50% of patients wait over 2 weeks for a GP appointment.

30% of patients cannot get an appointment at all.

The number of GPs has fallen by 2,000 since 2015.

5. Strikes

NHS staff have gone on strike over pay (2022–2024):

Real wages have fallen 20% since 2010 (after inflation), and staff are leaving in record numbers.

6. Funding crisis

NHS funding has grown by 1.5% per year (real terms) since 2010, far below the 4% per year needed to keep up with demand (ageing population, new treatments, rising costs).

The NHS has a £7.5 billion deficit (2023–24).

Why Is the NHS in Crisis?

1. Underfunding

NHS funding has grown by 1.5% per year (real terms) since 2010, far below the 4% per year needed. The NHS is £50 billion short of what it needs.

2. Ageing population

The UK population is ageing — 20% of people are over 65 (up from 15% in 2000), and older people need more healthcare.

3. Pandemic backlog

The NHS cancelled millions of elective surgeries during the pandemic (2020–2021) to focus on COVID-19. This created a backlog that has not been cleared.

4. Staff shortages

The NHS has 110,000 staff vacancies due to burnout, low pay, and Brexit. Without staff, the NHS cannot treat patients.

5. Social care crisis

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