Thousands of job cuts will proceed after the Treasury has agreed to a deal allowing the National Health Service (NHS) England to overspend this year to cover redundancy costs.

Earlier this year, the government had announced its plans to cut 18,000 administrative staff and managers across both NHS England and the Department of Health and Social Care.

The government had earlier stated its plans to abolish NHS England and bring it under the control of Department of Health and Social Care.

According to a BBC report, government had stated that NHS will receive no additional funding beyond the amount set in this year's spending review — an additional £29bn a year above inflation by 2028–2029.

NHS England, the UK Department of Health and Social Care and the Treasury have been negotiating this one‑off £1bn redundancy bill.

The Treasury is reported to have now approved £1bn ($1.3bn) for funding the redundancies.

Since these job reductions will generate savings in subsequent years, the NHS is anticipated to recover the costs later.

Chancellor Rachel Reeves is expected to announce further health service measures in the budget on 26 November, with government plans saying wider health service reforms will generate £1bn a year by the end of the parliament to improve patient care.

Every £1bn saved from reducing bureaucracy reportedly could fund 116,000 further hip and knee operations.

Under the proposals, NHS England is likely to be brought into the UK Department of Health within two years.

Meanwhile, Integrated Care Boards, which plan local health services, are set to have their staffing reduced by around 50%, the BBC reports.