Revenue allocations to primary care trusts (PCTs) in 2009-10 and 2010-11 have been informed by the new weighted capitation formula recommended by the independent Advisory Committee on Resource Allocation. The weighted capitation formula is used to determine PCTs’ target allocations, and gives older people a much higher weighting than those in their twenties and thirties.
Around 30 per cent. of the variation in target allocations per head between PCTs is estimated to be due to differences in the ages of PCTs’ populations. Actual allocations to PCTs depend also on pace of change policy; how quickly PCTs are brought closer towards their target allocations through the distribution of additional funding. Due to pace of change policy, it is not possible to estimate how much variation in actual allocations between PCTs is due to age.
The aggregate surplus delivered in 2008-09 by strategic health authorities (SHAs) and primary care trusts (PCTs) will be carried forward into 2009-10. This surplus will start to be deployed in a planned and managed way and will probably total some £800 million over the two financial years, 2009-10 and 2010-11.
The mechanism that will be used to deploy the surplus is through each SHA area determining and agreeing with the Department the level of accumulated surplus deployment required for 2009-10 and 2010-11 based on their local planning requirements.
The additional resources that primary care trusts (PCTs) received in 2008-09 were not limited to the 5.5 per cent. uplift in revenue allocations. In addition, the Department allocated a further £1.7 billion of central budgets direct to PCTs thereby increasing the proportion of the total NHS revenue budget that is allocated direct to PCTs.
In 2009-10 the Department will hold an unallocated sum for contingencies, on a non-recurrent basis. These will be released over the year, over and above the 5.5 per cent. allocations growth. Decisions on 2010-11 central contingencies will be made as part of the planning process for 2010-11.
The requested statistics are shown in the following table.
NHS revenue expenditure (£ billion)1,2,3,4,5 Revenue allocations including additional funding announced alongside allocations (£ billion)6 Percentage of NHS revenue in PCT control at time of allocations announcement 1996-97 31.656 22.714 71.8 1997-98 33.575 23.843 71.0 1998-99 35.801 24.951 69.7 1999-2000 39.293 31.328 79.7 2000-01 42.686 34.429 80.7 2001-02 47.289 37.220 78.7 2002-03 51.935 41.270 79.5 2003-04 61.865 45.313 73.2 2004-05 66.873 49.673 74.3 2005-06 74.168 54.307 73.2 2006-07 78.468 64.644 82.4 2007-08 86.344 70.689 81.9 2008-09 92.475 75.880 82.1 2009-10 98.263 80.031 81.4 2010-11 104.603 84.432 80.7 1 Changes to accounting treatment mean that figures are not consistent over the period, therefore it is difficult to make comparisons 2 Expenditure before 1999-2000 is on a cash basis. 3 Expenditure figures from 1999-00 to 2002-03 are on a Stage 1 Resource Budgeting basis 4 Expenditure figures from 2003-04 are on a Stage 2 Resource Budgeting basis. 5 2002-03 to 2006-07 figures are outturn (the actual year end position), 2007-08 figures are estimated outturn, and 2008-09 to 2010-11 is plan. 6 The additional funding announced alongside allocations might include central budgets or other special allocations which determine PCT initial resource limits.