RAWP Formula (Hansard, 11 March 1988)

§ Mr. Ashley
To ask the Secretary of State for Social Services if he will make it his policy to seek parliamentary approval before making any significant change to the resource allocation working party formula.

§ Mr. Newton
I do not think this would be appropriate, but we will, of course, follow the practice of our predecessors in informing the House of any changes we may decide to make in the light of the outcome of the current review of the resource allocation working party formula.

§ Mr. Ashley
To ask the Secretary of State for Social Services if he will list the factors now used in calculating the resource allocation working party formula and the new ones that have been proposed to him for inclusion; and if he will indicate in each case whether the factor is related to the demand for health care or to the supply of existing provision.

§ Mr. Newton
The resource allocation working party formula measures the relative needs of each region by taking account of population (and the use made of health services by people of different age groups and sexes);402W morbidity as indicated by standardised mortality ratios; patient flows between regions; and higher staff costs in London and the south-east. Separate allocations are made to take account of the costs associated with medical teaching.
The National Health Service management board's review of the national RAWP formula is exploring the scope for improving the way in which the formula measures relative need. Aspects of the formula where the NHS management board identified scope for improvement were listed in the summary of recommendations for further analysis and research set out in the interim report on the review published in December 1986. A copy is in the Library.

§ Mr. Ashley
To ask the Secretary of State for Social Services if he will list the individuals and organisations which have made representations regarding changes in the resource allocation working party formula; and if he will indicate in each case whether the changes proposed by each would result in an overall faster or slower movement of resources towards the regions considered to be deprived by the present formula.

§ Mr. Newton
A list of respondents to the formal consultation on the review of the resource allocation working party formula is set out at annex D of the National Health Service management board's interim report on the review, published in December 1986. A copy is in the Library.
The overall aim of the review is to improve the sensitivity with which the formula measures relative need, and hence to refine the targets on which allocations to regions are based. Ministers take decisions each year on the pace of movement towards each region's target share of available resources. This process is not determined by the formula and is, therefore, not within the remit of the review.