HL Deb 20 December 2001 vol 630 cc94-5WA
Baroness Noakes

asked Her Majesty's Government:

Whether they have carried out any studies into the sources of cost pressures on the National Health Service for 2001–02; and whether they will publish their findings. [HL2023]

Lord Hunt of Kings Heath

The Government routinely assess the cost pressures on the National Health Service as part of the annual planning process. The assessment is done by an analysis of past trends in cost pressures and discussions with the National Health Service to estimate the impact of new cost pressures. In 2001–02, funding included provision for the following cost pressures on the National Health Service: pay awards of around 3.9 per cent. on average; other pay pressures such as the new contract for junior doctors and the introduction of cost of living supplements for some staff living in the South of England; non-pay inflation in the National Health Service which is above the level of general inflation; growth in prescribing costs of around 10 per cent., made up of trend growth, the additional impact of appraisals made by the National Institute of Clinical Excellence and the implementation of national service frameworks.

All these cost pressures were fully funded. They are national assumptions and the exact costs will vary from area to area.