The National Institute for Health and Care Excellence (NICE) will increase its cost-effectiveness thresholds to broaden patient access to innovative therapies in England. Officials confirmed on 1 December 2025 that the institute will raise the financial limits used to determine value for money within the health service.
From April 2026, the standard threshold range will move from £20,000–£30,000 to £25,000–£35,000 per quality-adjusted life year (QALY). This policy shift – the first such update in 25 years – aims to reflect the value of modern medical advances more accurately.
Dr Samantha Roberts, chief executive of NICE, said the new thresholds will support the life sciences sector and ensure faster patient access to new treatments. The move follows a periodic review of how the health service evaluates clinical benefits against costs.
NICE also intends to adopt the EQ-5D-5L value set – a more descriptive method to measure health outcomes – following a successful peer review. These data are vital for capturing the impact of medicines on patient well-being accurately.
The revised thresholds apply to all new technology appraisals and those currently in progress. If a committee determines a treatment is not cost-effective under current limits but would meet the new criteria, NICE will pause the evaluation. These topics will resume in April 2026 when the institute begins to apply the updated financial rules.
The organisation expects the higher limits to result in the recommendation of an additional three to five medicines or indications each year. This adjustment provides greater flexibility during price negotiations and enhances the commercial attractiveness of the market for developers.
Source: National Institute for Health and Care Excellence
Link: Changes to NICE's cost-effectiveness thresholds confirmed
Date: 1 December 2025
