Government response to NRS Healthcare liquidation fails to offer long-term solutions, warns BHTA 

The collapse of NRS Healthcare in August 2025 sent shockwaves through the healthcare sector, disrupting essential provision for thousands of people who rely on vital aids to live safely and independently.  

Given the scale of the impact, the UK Government has now issued a response to a key parliamentary question examining both the collapse of NRS Healthcare and its impact on vital healthcare equipment services. 

However, while the response acknowledges the importance of community equipment and outlines short-term actions taken during the liquidation, it offers no long-term assurances to prevent a similar collapse from happening again.

A key reason there was not a system-wide failure was due to the hard work by BHTA members and others to step in and take on contracts and ensure continuity of services. This has so far gone unacknowledged by government.

Below is the full written question and government response for BHTA members’ reference: 

NRS Healthcare: Insolvency 
Asked by Lord Allan on 17 November 2025 
“To ask His Majesty’s Government what assessment they have made of the impact of the insolvency of NRS Healthcare on the provision of community equipment services.” 

Answer from Baroness Merron, Parliamentary Under-Secretary of State for Health and Social Care (4 December 2025) 

“Community equipment, such as wheelchairs, hoists, and other specialist medical equipment, forms an important part of many people’s health and care support package. Such equipment can be critical in supporting better care outcomes, can enable people to remain in or return to their homes as the primary setting for care, and can avoid unnecessary stays in hospital or care homes. 

“Local authorities have statutory duties under the Care Act 2014 and the Children and Families Act 2014 to arrange for the provision of disability aids and community equipment to meet the assessed needs of individuals in their area. While some local authorities provide these services themselves, many have contracts with external suppliers, such as NRS Healthcare. The Department does not have a statutory role in the provision of community equipment. 

“However, as part of NRS Healthcare’s liquidation process, the Government made available short-term funding to the Official Receiver to cover the essential operating costs of NRS Healthcare and its affiliated companies. This funding ensured that trading was able to continue for a limited time, minimising disruption by providing crucial time for local authorities to put alternative supply in place. The Department continues to monitor the situation in affected local authorities through Partners in Care and Health, a Department funded programme run in partnership with the Local Government Association and the Association of Directors of Adult Social Services.” 

BHTA’s call for urgent, coordinated action 

To protect service users and support the businesses that deliver this essential work, the All-Party Parliamentary Group (APPG) for Access to Disability Equipment’s recent report points to a series of important recommendations to the UK Government to improve community equipment services as a whole:

• Develop a National Strategy for Community Equipment – led by a dedicated Minister, ensuring national consistency, accountability, and funding reform.
• Reform funding and commissioning to focus on quality, not just cost, and support sustainable innovation.
• Reduce waiting times and delays through workforce investment and better coordination between the NHS and local authorities.
• Improve communication and transparency with families and carers through a national framework and central data monitoring.
• Create a National Advisory Board to give equipment users and carers a real voice in service design and delivery.
• Strengthen reuse and recycling systems so equipment no longer sits unused while others go without.

BHTA stands ready to work with the government, local authorities, the NHS and industry partners to help shape a more resilient and sustainable future for these essential sectors. The people who rely on this equipment — and the professionals who deliver it — deserve a system that is robust, responsive, and protected from preventable disruption.