According to the NHS Guidelines, the NHS logo should be seud as follows:

"All NHS websites should carry the NHS or your organisation's logo. Your communications/corporate identity lead will have ordered free artwork from the NHS identity team. If they haven't, they can download an order form from www.nhsidentity.nhs.uk.

Do not use 'old' logos on any new NHS website. Existing NHS websites should change to the new logo as soon as possible. Ambulance trusts may use the Crown badge together with their NHS logo, as outlined in the main NHS identity policy document (NHSGO1). The NHS logo should always be reproduced in its original form. It must never be reproduced in a tint or altered in any way.

The NHS logo has transparent letters, so make sure it is correctly anti-aliased using the background colour of the page (usually white). Use a format that reads the NHS logo correctly (i.e. as transparent) - GIFs do but JPGs do not.

Logos should be carried top right and must appear on every page, as not everyone will come through the homepage. The NHS logo has an 'exclusion zone' around it, in which nothing else should appear. The exclusion zone is defined as the height of the NHS logo.
The logo is not intended to be 'read' in a phrase. For example, when writing "The NHS working in your community", the letters 'NHS' must not be replaced by the NHS logo.

Initiatives and campaigns should all be clearly owned by the NHS and give support to the reputation of the health service. They should not have a separate symbol, picture or text style that is used as a logo. "

Note that these are guidelines. If you need to reduce the white space in order to leave enough roomon your site for actual content then we advise that you should. If you want to use a jpg instead of the lower quality offer by a GIF then ensure that the JPG has the right background colour, or use a PNG which offers high quality and transparency.