Health Expenditure (Yorkshire) (Hansard, 3 June 1986)

§ Mr. Hayhoe

The principle underlying the resource allocation working party (RAWP) formula is to distribute resources more fairly across the country so as to promote equality of access to health care for people in equal need.538W RAWP seeks to determine each region's target share of the available resources according to the size of its population, weighted to take account of age, relative mortality (as a proxy for morbidity) and other factors. These criteria are now being reviewed.

In 1977–78, the first year in which the RAWP formula was applied, regions ranged from 11 per cent. below their RAWP target to 15 per cent. above target, with the Yorkshire region at 4.4 per cent. below target. By 1986–87, all except the two North Thames regions are within 4 per cent. of their target, with the Yorkshire region 2.2 per cent. below target. The rate of progress towards target is influenced by a number of factors. The highest increases in funding have generally been allocated to the regions furthest from target, but increases are constrained by the need to proceed at a manageable pace to allow regions time to adjust their plans. Population growth or decline also affects the extent to which funding increases effectively bring a region closer towards its target. Thus some regions with declining populations have moved towards their targets more rapidly than has the Yorkshire region.

A similar approach is used for the distribution of capital funding. An element of funding distributed on the basis of regions' capital stock is currently being phased out, and by 1991–92, capital will be distributed on the basis of weighted population only. In 1986–87, the RAWP element of Yorkshire region's £56 million capital allocation amounted to £49.5 million: this represents £13.38 per head of weighted population compared with a national average of £12.70.