HC Deb 19 November 2001 vol 375 cc125-6W
Dr. Murrison

To ask the Secretary of State for Health if he will make a statement on how the higher travel costs and average basic pay of health workers in rural areas is reflected in the NHS funding formula. [14378]

Mr. Hutton

The Department uses a weighted capitation formula to determine each health authority's fair share of available resources, to enable them to commission similar levels of health services for populations in similar need. The formula weights each health authority's population

Number of children looked after at
31 March with 3 or more placements during the year 31 March 2001 Percentage of children looked after with 3 or more placements during the year
Calderdale 33 201 16
Bolton 45 275 16
Trafford 27 165 16
Stoke-on-Trent UA 60 367 16
Bath and North East Somerset UA 23 141 16
Buckinghamshire 44 270 16

according to their relative need for healthcare and unavoidable geographical differences in the cost of providing healthcare.

Within the formula the staff market forces factor estimates the relative differentials that national health service employers need to pay in order to recruit and retain staff. And the emergency ambulance cost adjustment reflects the unavoidable cost variations of providing emergency ambulance services. This adjustment particularly benefits areas with low population density and lower numbers of journeys than average.

Dr. Murrison

To ask the Secretary of State for Health what plans he has for including rurality as a factor in the NHS funding formula. [14379]

Mr. Hutton

The national health service funding formula weights each health authority's population according to their relative need for health care and the unavoidable geographical differences in the cost of providing health care.

Earlier studies have not identified evidence of need for health care associated with rurality that is not already covered within the formula. However some services cost more to provide in rural areas. An emergency ambulance cost adjustment has been included in the formula since 1998–99.

A review of the formula is currently under way. By 2003 following the review, reducing inequalities will be a key criterion for allocating NHS resources to different parts of the country. The review will include consideration of the health needs of rural areas.