Income received by NHS hospital trusts from private patients has risen by 23% in the last four years, as waiting lists for non-paying patients have soared.

Under the government’s reforms, hospitals have been given the right to raise 49% of their funds through non-NHS work, often from patients seeking to avoid waiting for surgery. Prior to this, there had been a 2% cap on income that could be raised from private patients.

Ministers revealed in parliament that in 2015-16, hospitals in England received £558m from patients choosing to pay private – up from £454m four years earlier. The figures come as the number of patients waiting more than 18 weeks for treatment has increased by 54% during the same period. Of those treated in October, more than 360,000 patients had been waiting for 18 weeks or more for treatment, according to the latest data from NHS England, compared to 234,030 in October 2011.

The shadow health minister, Justin Madders, said: “This government is presiding over a two-tier system, where the wealthiest in society can pay to jump the queue. The Tories’ disastrous top-down reorganisation has allowed hospitals to fill up to half of their beds with private patients while leaving NHS patients waiting longer on ever-growing waiting lists.

“The NHS is stretched to breaking point at the moment, so for it to be seeing more and more private patients is an unforgivable position to be in. Access to healthcare should be based on a patient’s needs, not ability to pay for treatment, and this government needs to act in the interests of all patients, not just those who can stump up cash for quick treatment.”