§ Mr. Raisonasked the Secretary of State for Social Services if he will set out the factors which have caused the charges for pay beds in hospitals to be increased in the current year by about double the rate of inflation.
§ Mr. EnnalsSection 65 of the National Health Service Act 1977 lays down the method to be followed in determining new pay bed charges operative from 1 April each year. Under subsection (3) I have power to classify Health Service hospitals and determine the charges to be made within each class for the accommodation and services provided at a hospital falling within each class. In determining the charges I am required to have regard to the total cost which, by reference to the facts known to me at the time of the determination, it is estimated will be incurred during the year commencing 1 April in the provision for resident patients of services at hospitals within each class. I also have power to include such amounts as appear to me proper and reasonable by way of a contribution to expenditure properly attributable to capital account.
The differences between pay bed charges for the financial years 1978–79 and 1979–80 are due to (a) the estimated increases in the cost of NHS services in the coming financial year, and (b) a revision in the method of calculating the contribution to expenditure properly attributable to capital account. The revised method for making this latter calculation has enabled me to make a more accurate estimate of the appropriate contribution under this head for each class of hospital. The basis on which these charges are calculated is otherwise unchanged.