NHS organisations are to be freed up by a dramatic reduction in the amount of data they are asked to collect, with the government pledging to cut by a third the number of employees 'tied up' in the time-consuming process.

Health minister Lord Warner announced the cuts as part of an ongoing process of lightening the load of bureaucracy on the service, hailing a 25% reduction in data collection already achieved since April 2003.

Lord Warner said: "Data collection has an important role to play in the NHS. The NHS spends nearly £70 billion a year and like any huge organisation we need information to run it well and inform the public."

He conceded that some trusts were being asked to provide information which was being collected too frequently or being duplicated, while some related to local issues which Whitehall did not need to monitor.

"I want to ensure that the burden of collecting such information is kept to the minimum, freeing up time for the NHS locally to focus on patient care, rather than filling in forms and ticking boxes. I've listened to the view from the frontline about the burdens they face and am committed to reducing those burdens."

The government say the cuts will mean around 150 people will be freed up  at the local level for other work.

Despite attempts to reduce the number of watchdogs monitoring NHS performance, there remain a handful of separate bodies inspecting the service for similar indicators. The leading body the Healthcare Commission recently signed a concordat with the other inspectors to help reduce duplication.

Anna Walker, chief executive of the Healthcare Commission said: "By using data more intelligently we can develop a more informed picture whilst reducing the number of visits and demands for information on the NHS. In future, we want to be measuring what matters to patients, providers and clinicians."

Meanwhile, the government is committed to halving the number of Arms Length Bodies (ALBs) which manage different parts of the service, aiming to save £500 million by 2007/8, largely through a 25% reduction in administrative jobs.

Another new initiative the Healthcare Information Centre will be launched in 2005, opening up access to NHS information through a variety of media for patients and other stakeholders, which the government says will reduce the burden on the NHS frontline from all sources.