12. To ask the Secretary of State for Health What assessment she has made of the effect of fair funding on (a) the health service and (b) health inequalities since its introduction. (103778)

Revenue allocations are made on a fair formula that directs funding towards those areas of greatest need. For 2006-08 revenue allocations, PCTs will receive an average increase of 19.5 per cent. In addition, PCTs have been moved more quickly to their fair share of funding. This has led to funding of £1,388 per head in England in 2007-08 and, for health inequalities, £1,552 per head in Spearhead areas in 2007-08.