Update on Transformation Fund: 20 March 2026

In light of the ongoing financial pressures facing the NHS both locally and nationally, we have found it necessary to reconsider our approach to the 2026/7 Transformation Fund initiative. We want to be open with colleagues that funding will not be available in its current form, as much of the fund now needs to be redirected to support wider system priorities. We appreciate that this will be disappointing news, and we share that disappointment.

We fully recognise the significant effort that colleagues have invested in developing bids to date and appreciate the considerable levels of energy and commitment shown in working collaboratively.

It is important that we do not lose the value of the work already undertaken. The bid process has generated strong thinking, innovation, and a clearer understanding of what good looks like in terms of impact, deliverability, and alignment to our strategic priorities. We are grateful to all those who have contributed so positively to date.

As such, the assessment process will continue as planned. This is not about stopping the work, but about ensuring we fully understand which proposals best meet the agreed criteria, and why. This learning will be critical as we move into future commissioning decisions. Where bids demonstrate significant impact, strong outcomes, and clear alignment to system priorities, the ICB may look to commission these through alternative routes, to ensure they still directly inform how we recommission and redesign services going forward. This is likely to require us to consider how we pool or reprioritise existing resources, rather than relying on new transformation funding.

To support this, we are extending the submission deadline to 30 April. This is intended to give teams additional time to refine and strengthen their proposals in line with the criteria. It is important to stress that we do want the process to continue, and we strongly encourage teams to complete and submit their bids. We will continue to engage with colleagues throughout this process and ensure that the learning from bids is captured, shared, and used to inform next steps.

Application process

If you wish to submit an application please read the updated application guidance before completing the transformation funding application proforma and the transformation funding worksheet and email both documents to nnicb-nn.systempmo@nhs.net.

Assessment panel dates

Assessment panels will take place on:

  • Thursday 7 May 2026
  • Friday 8 May 2026

Applications will be reviewed by the panel in advance of these meetings.

Attendance at panel

To support the assessment process, we will offer SROs or nominated leads the opportunity to attend the panel for their application, as follows:

  • Up to 5 minutes to provide a brief overview of the proposal
  • Up to 5 minutes to respond to any clarification questions from panel members

Attendance is optional and intended to support understanding and clarification; decisions will be informed by the written application and panel assessment.

Further details on scheduling and attendance arrangements will be shared closer to the panel dates.

  • Transformation Fund FAQs

    Q: How much money is left?
    A: This is not currently confirmed but we do know that it is very limited.

    Q: What are the other needs which the money is going to support?
    A: It has become clear that the national objective to achieve financial balance requires greater localised support, and as we have worked with colleagues within the cluster and NHSE, the need to redirect this fund has become increasingly apparent.

    Q: How can we do Transformation if we have no money?

    A: The Transformation Fund represents a relatively small proportion of the overall resources committed across the system. While it has been an important enabler for innovation and change, it is only one part of a much wider financial picture. As we move forward, it will be increasingly important that we take a whole-system view of how resources are used, ensuring that investment decisions are aligned to our strategic priorities and deliver the greatest possible impact for our population. This includes making best use of the resources we already have, alongside any future transformation funding opportunities.

    Q: Will there be a fund next year?       
    That is the intention. Whilst we accept this year’s disappointment, we are not aware of any reasons currently why future years will not proceed as planned.