§ Ann ClwydTo ask the Secretary of State for Wales what research his Department has(a) undertaken and (b) commissioned, to assess the impact of amending the formula for funding health authorities in Wales since 1997. [110943]
§ Mr. HansonIn February 1997, the Welsh Office set up the Resource Allocation Working Group (RAWG), comprising Welsh Office officials and NHS representatives. The purpose of the group was to evaluate the existing formula for allocating health resources and, if appropriate, recommend an alternative method.
The group took account of many factors and recommended that a modified version of the English Department of Health method should be used. This method took account of socio-economic variables.
Following this an analysis was undertaken to quantify the financial impact of applying the RAWG recommendations and it became apparent that it would exacerbate the financial problems faced in the NHS. At the same time the Department of Health announced a review of the English formula. In view of that, changes were postponed.
Since 1 July 1999, the responsibility for the allocation of health funding has become the responsibility of the National Assembly for Wales, and I understand that they have recently decided to set up a technical group and a steering group to review the NHS revenue allocation formula.