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Health Funding

Volume 405: debated on Tuesday 13 May 2003

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To ask the Secretary of State for Health what the timetable is for the implementation of the new health funding system; when primary care trusts will receive their full target entitlement under the new system; and what the difference between target funding and allocation is for each primary care trust. [111173]

The revenue allocations to primary care trusts (PCTs) for 2003–04 to 2005–06 were announced on 11 December 2002. The allocations were based on a new formula following a review carried out under the auspices of the Advisory Committee on Resource Allocation.For the 2003–04 to 2005–06 allocations round PCTs have received average cash increases of 9.24 per cent., 9.55 per cent. and 9.32 per cent., or 30.83 per cent. over the three years. This represents average real terms increases of 6.84 per cent., 6.88 per cent. and 6.65 cent., or 21.79 per cent. over the three years.As a result of the 2003–04 to 2005–06 allocations round all PCTs will make progress towards their target shares of resources as determined by the new formula.The allocations to all PCTs for 2003–04 to 2005–06 include resources to finance the cost of pay reform, new drugs and treatments and additional capacity. It includes the commitments we set out in the NHS Plan. We have also given extra resources to under target PCTs.Information from targets as determined by the weighted capitation formula for 2003–04, is available in the Library.