HC Deb 14 June 1995 vol 261 cc557-8W
Mr. Morgan

To ask the Secretary of State for Health, pursuant to her answer to the hon. Member for Hertsmere (Mr. Clappison) of 22 May,Official Report, column 409, what provision she has made for notification of the Comptroller and Auditor General of the £165 million of extra-statutory payments. [26596]

Mr. Malone

The payments will be identified in the individual accounts of family health services authorities for 1994–95 and a note will be included in the national summarised accounts for 1993–94. These accounts are audited by the National Audit Office.

Mr. Morgan

To ask the Secretary of State for Health, pursuant to her answer to the hon. Member for Hertsmere (Mr. Clappison) of 22 May,Official Report, column 409, what was the level of extra-statutory payments relevant to each financial year from 1990–91 to 1994–95; on what date the legal advice was received; what is the date of the most recent guidance note from the NHS executive placed in the Library; and if she make a statement. [265951]

Mr. Malone

The level of expenditure by general practitioner fundholders on management allowances between 1990–91 to 1993–94 was:

  • 1990–91: £6 million
  • 1991–92: £14.1 million
  • 1992–93: £29.5 million
  • 1993–94: £49.5 million

Expenditure figures for 1994–95 have not yet been finalised, but the total sum allocated to family health services authorities amounted to £66 million.

Queries were first raised about the basis of management allowances in the course of routine departmental business in 1991 and 1992, but the implication of the extra-statutory nature of the payments appears not to have been fully recognised until the NHS executive's fundamental review of the fund holding scheme during 1994. The review concluded in December 1994 and health service guideline (94)56, dated 30 December 1994, set out how management allowances would be calculated during 1995–96.

East London and City health authority and City and east London family health services authority—London initiative zone
Revenue Allocation Capital Total Revenue Actual spend Capital Total
1993–94
District 631,029 792,241 1,423,270 642,690 805,780 1,448,470
City and Hackney 1,018,987 260,700 1,279,687 1,060,570 260,692 1,321,262
Newham 1,557,000 258,480 1,815,480 1,489,105 248,820 1,737,925
Tower Hamlets 539,126 297,542 836,668 537,551 296,792 834,343
Total 3,746,142 1,608,963 5,355,105 3,729,916 1,612,084 5,342,000

Regulations were made in March 1995 to provide statutory authority for payments from 1 April 1995.

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