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NHS: Finance

Volume 485: debated on Thursday 18 December 2008

To ask the Secretary of State for Health (1) with reference to the answer of 26 November 2008, Official Report, column 2066W, on departmental public expenditure, whether the weighted capitation formula for National Health Service allocations takes into account (a) transience of, (b) levels of alcohol and drug abuse in, (c) the number of elderly people in, (d) the number of households not meeting the decent housing threshhold in, (e) the number of people on incapacity benefit in and (f) the number of vulnerable children and adults in local populations; (244404)

(2) whether the weighted cap funding for health used by his Department includes weighting for the number of (a) houses of multiple occupation, (b) caravan parks and (c) other forms of housing associated with transient populations.

Revenue allocations to primary care trusts (PCTs) in England for 2009-10 and 2010-11 were announced on 8 December 2008. They were informed by the new weighted capitation formula for England developed by the independent Advisory Committee on Resource Allocation (ACRA).

The weighted capitation formula for England is based on an assessment of the relative need for health care services, which takes account of the size, age, health status and socio-economic characteristics of PCTs’ populations. The weighted capitation formula takes direct account of the number of elderly people, and for the health and community health services component, the number of people on incapacity benefit. The formula also takes into account the number of asylum seekers. The other characteristics listed are not taken into account directly within the formula.

As part of the review that informed the new formula, ACRA commissioned independent research on the appropriate elements to be included in the weighted capitation formula. The new formula includes a range of socio-economic characteristics and indicators of deprivation, all of which have been tested for technical robustness and materiality.

The full list of factors taken into account in the weighted capitation formula is set out in the Department’s publication “Resource Allocation: Weighted Capitation Formula, Sixth Edition”, which has been placed in the Library, and is also available at:

The “Report of the Advisory Committee on Resource Allocation” has already been placed in the Library and is also available at:

The research reports supporting ACRA’s review will also be published shortly.