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Leicestershire Primary Care Trust: Finance

Volume 462: debated on Wednesday 11 July 2007

To ask the Secretary of State for Health on what basis decisions were made on Leicestershire Primary Care Trust’s per capita allocation of funding. (142733)

Revenue allocations are made on the basis of a weighted capitation formula which directs funding to those areas of greatest need.

The components of the formula are used to weight each primary care trust’s (PCT) crude population according to their relative need (age and additional need) for healthcare and the unavoidable geographical differences in the cost of providing healthcare (the market forces factor).

The weighted capitation formula is used to set targets, which then inform allocations. The formula does not determine allocations. The pace of change policy determines actual allocations to PCTs as it reflects decisions on the speed at which PCTs are brought nearer to target through the distribution of extra funds.

Tables showing the revenue allocations for all PCTs in England for the period 2006-07 to 2007-08 and 2003-04 to 2005-06 are available in the Library.