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South Staffordshire PCT: Finance

Volume 475: debated on Thursday 8 May 2008

To ask the Secretary of State for Health (1) what assessment he has made of the effects of his Department’s methodology for distributing revenue funding to primary care trusts on the funding available to South Staffordshire PCT in each of the last three years;. (201330)

(2) if he will increase the proportion of his Department’s revenue funding to primary care trusts payable to South Staffordshire Primary Care Trust from 2009-10 onwards.

Revenue allocations are made to primary care trusts (PCTs) on the basis of the relative needs of their populations. A weighted capitation formula is used to determine PCTs’ target shares of available resources, to enable them to commission similar levels of health care for populations with similar needs.

South Staffordshire PCT received allocations of £653.7 million in 2006-07 and £716.1 million in 2007-08. These represent a cash increase of £116.5 million or 19.4 per cent. over the two years. All PCTs received an above inflation cash increase of 5.5 per cent. in their 2008-09 allocations. South Staffordshire PCT received £755.3 million, a cash increase of £39.1 million in 2008-09.

The Advisory Committee on Resource Allocation (ACRA) continuously oversees the development of the weighted capitation formula. ACRA is an independent body, made up of NHS managers, academics and GPs.

As part of its work programme to support revenue allocations to PCTs post 2008-09, ACRA has reviewed the main elements of the formula. This work will inform ACRA’s final recommendations to Ministers on potential changes to the funding formula. Ministers plan to make the allocations for 2009-10 and 2010-11 by summer this year based on a new formula. PCTs will be informed of the changes to the formula following the allocations announcement.