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Contingency Fund

Volume 450: debated on Thursday 26 October 2006

To ask the Secretary of State for Health how the contingency fund described on page 2 of her Department’s report on NHS financial performance in quarter 1 2006-07 was created. (92028)

The contingency has not been created from new funding provided by the Department of Health. As part of their management of the £5.5 billion central budget bundle distributed to them for the NHS, the 10 strategic health authorities (SHAs) have established a level of contingency which currently stands at £350 million. This contingency is a prudent approach by SHAs to manage financial risk in the NHS while ensuring that services to patients are delivered.