The government miscalculated the full cost of the pay reforms in the NHS, its chief executive admitted to MPs this week.

Mr Nicholson was giving evidence to the House of Commons Committee of Public Accounts as part of its one-off inquiry into the National Audit Office and Audit Commission report Financial Management in the NHS, which was published in June.

“As far as the department is concerned we could be better at costing some of our policies,” he said. “There are some examples …