After expanding spending on agency workers to increase staffing levels, the government is targeting the very same agencies that made profits off their £3.3billion total spend last year.
Incentives will also be introduced in efforts to grow the number of permanent staff in NHS trusts.
Health regulator NHS Improvement is hoping to cut NHS agency spend by £1billion by the end of 2018, with £160million of the forecasted savings being made by the end of this year.
One example of this is the money spent on management consultants. From July to September 2015 £42million was saved in comparison to the same period in 2014.
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