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NHS Funding Formula

Volume 454: debated on Monday 11 December 2006

To ask the Secretary of State for Health what assessment she has made of the impact on Northamptonshire's NHS of the capitation element of the NHS funding formula. (105022)

[holding answer 7 December 2006]: The weighted capitation formula is one of four elements used to set allocations for primary care trusts. The other three elements are recurrent baselines (the previous year's allocation plus in-year adjustments), distances from targets (the difference between weighted capitation targets and recurrent baselines) and pace of change policy (which determines the level of increases given to PCTs).

The national formula is overseen by the independent advisory committee on resource allocation and is applied consistently to all PCTs. The impact on the 2006-07 and 2007-08 allocations to PCTs in Northamptonshire is shown in the table.

2006-07 and 2007-08 percentage increase in funding

2007-08 closing percentage distance from target

Cherwell Vale



Daventry and South Northamptonshire






Northamptonshire Heartlands



South Peterborough



England average




The table is based on allocations made to 303 PCTs before they were reduced to 152 PCTs on 1 October 2006. From 1 October 2006 there is one Northamptonshire PCT.