In December 2025 the government announced that from April 2026 it will increase the standard NICE cost-effectiveness thresholds, which are used when evaluating new medicines for use in the NHS, from £20,000 – £30,000 to £25,000 – £35,000. Notably, the threshold has not changed since the inception of NICE. NICE analysis estimates that this will mean an additional 3 – 5 new medicines or indications will be approved per year. NICE currently use the EQ-5D-5L as the health-related quality of life tool. An additional new value set will be introduced which may also have some impact on medicines’ cost-effectiveness. The aim of these changes is to support the working environment for pharmaceutical companies and enhance the government’s ability to be innovative and supportive of the sector. In January 2026, Ataxia UK responded to a DHSC consultation which sought views on proposals to give ministers limited powers to direct NICE on setting the standard cost-effectiveness threshold. Ataxia UK supports this as it provides a clear mechanism for change to the cost-effectiveness threshold, which did not clearly exist before.
Changes to the NICE cost-effectiveness threshold
Post Published: February 12, 2026
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