New DLN Transformation Fund now open

Webinar: Monday 9 March, 1pm – 2pm

A webinar will be held on Monday 9 March, 1pm – 2pm for potential applicants and partners to hear more about the Fund.  This includes information about the criteria and application process and the opportunities it offers to support innovative, impactful change across our system.

Join the webinar

Webinar: Wednesday 18 March, 11:30 – 12:30

A webinar will be held on Wednesday 18th March, 11:30 – 12:30, to cover any questions in relation to process, the transformation funding application proforma and transformation funding worksheet. Please send any specific questions you would like addressed at the session to nnicb-nn.systempmo@nhs.net.

Join the webinar

A major new DLN Transformation Fund is being launched across the Derby & Derbyshire, Lincolnshire and Nottingham & Nottinghamshire (DLN) Cluster to accelerate improvements in care, reduce inequalities and strengthen the long-term sustainability of local health services.

About the fund

The fund is for bold, collaborative transformation that will reshape pathways of care, shift resources closer to communities and deliver measurable improvements in system performance and population outcomes.

It represents a non-recurrent investment of £33 million for 2026/27, rising to up to £100 million over three years. Initial focus in this first year will be proposals that focus on urgent and emergency care and planned care transformation.

Proposals for the fund

We are seeking ambitious, system-level proposals that demonstrate clear return on investment, strong partnership working and sustainable impact beyond the period of funding. We need providers and partners to come together with big, credible ideas that align with our integrated neighbourhood health ambitions and our commitment to prevention and reduced health inequalities and inequity.

Applications are invited from NHS providers across all three ICBs, demonstrating meaningful collaboration and partnership across primary care, community, acute, local authority and VCSE organisations. Single organisational bids will not be prioritised.

All proposals must demonstrate a positive return on investment within two years.

Key information

Please note, these documents are still subject to sign-off from NHS England:

Key dates:

  • Fund launch: 27 February 2026
  • Closing date for applications: 5pm on 1 April 2026.
  • Decisions from assessment panel: late April – May
  • Mobilisation: from late April/early May

How to apply

Please use the separate transformation funding worksheet for the consistent capture of key milestones, financial and non-financial benefits. This should be submitted alongside the transformation funding application proforma.


  • Transformation Fund FAQs

    Q: Is there £33m available every year for the next 3 years (Total £99m) or does it increase by £33m each year for the next 3 years? (Total £198m). 

    A: The Transformation Fund has been identified through ICB core growth funding.

    The Transformation fund will be allocated to providers non-recurrently to a maximum of £33m per year.  (Total £99m over 3 years). All proposals must demonstrate a positive return on investment within 2 years and a minimum 4:1 return over three to 5 years with at least 2:1 expected to be cash releasing.

    A separate conversation will be had through contracting about how these will be transacted through contracts between acute and community providers. The goal here is to deliver allocative efficiency and make sure resources are being used in the most effective way across the system.

    Q: Has the source of Transformation Funding been taken from Acute growth funding?   

    A: Payment mechanisms for Acute planned and emergency care are being incorporated into Acute contracts as per NHSE operating guidance.

    As we look ahead to 2026-27, our system is facing a significant efficiency requirement – between 6% and 8% - so its more important than ever to make every pound count and direct funding to areas that will deliver the best outcomes for our population. 

    With that in mind, we recognise that simply maintaining the status quo won’t be enough. That’s why we are actively commissioning alternative pathways designed to enhance outcomes and deliver better value for our communities.   

    Specifically, 0.5% of ICB allocation growth funding has been earmarked to support Transformation of current services and pathways. This targeted investment is not being diverted from Acute growth funding, but rather represents a strategic use of growth allocation to drive service improvement and innovation.   

    Q: Can a non-NHS provider / partner submit an application as the lead organisation? 

    A: The Transformation Fund is aimed to support system transformation at pace and scale.  There is an explicit expectation of collaboration across health, care and voluntary sector organisations, recognising that to achieve the positive return on NHS investment and financial benefits (including cash releasing benefits within two years) will require considerable engagement from providers of NHS commissioned services.   Non-NHS organisations are not precluded from offering themselves as the lead in submitting proposals.  However, given the expectation for NHS financial benefits it would be prudent to consider why an NHS provider would not be identified as the lead.   

    Q: Please clarify the rules around this in relation to MHIS. Would anything categorised as MHIS be a straight refusal, or would there be an opportunity for a more nuanced discussion? Similarly, would non-MHIS items such as autism, LD or dementia services be eligible or are these also part of the MHIS rule?    

    The aim of the transformation fund is to accelerate bold, collaborative whole pathway redesign across our health and care landscape, rather than support ‘business as usual’. 

    Transformation of mental health services will be considered, however proposals should align to the ICB priorities for 2026/27 to reduce use of hospital-based services and deliver constitutional and NHS performance standards by focusing on urgent and emergency care recovery and planned care reform. 

    These priorities are likely to be underpinned by initiatives including integrated neighbourhood health services, improved care for people living with frailty, multiple long-term conditions and those on end-of-life pathways and ‘left shift’ of planned care. All of these should address health inequalities and inequity for our CORE20PLUS populations. 

    All transformation funding proposals will need to demonstrate benefits expected from the additional funding (e.g. over and above those delivered by MHIS) and there needs to be a positive return on investment. 

    To make the most of the financial resources available across the cluster, our approach for MHIS-related proposals will be to utilise MHIS funds as the primary source of support. If a proposal's costs exceed what MHIS funding can cover, we may supplement those additional costs with the transformation fund. This will ensure that we allocate funding efficiently and leverage both streams to maximise impact.