Stockton's Infinity Bridge

Clinical Commissioning Group (CCG) funding allocations published for the next two years

20 December 2013

NHS England recognise deprivation and equal need as it publishes CCG funding allocations for next two years following adoption of new formula

NHS England has published the Clinical Commissioning Group (CCG) funding allocations for the next two years, following a decision to adopt a new funding formula for local health commissioners by the NHS England Board on 17 December 2013.

The Association had, together with Durham University, health agencies and other partners across the North East, made strong representation to the NHS England Board voicing concerns over its review of allocations which could have seen a substantial transfer of funds away from the North East.  Under the potential allocations NHS England had published, every CCG in the North East would have lost money, with the total loss to the North East amounting to approximately £166m.

The Association’s response voiced significant concerns that the proposed formula was focused almost exclusively on age and gender, with a correspondingly smaller focus on deprivation, and did not include the health inequalities weighting which was used to account for unmet need as well as ill-health prevention. This approach seemed counter to the Mandate and to the Health and Social Care Act duty to reduce inequalities.

The Association is therefore pleased to note that the NHS England Board has agreed to adopt a new funding formula for local health commissioners which includes a specific deprivation measure and welcomes the statement from NHS England confirming their “absolute duty to tackle health inequalities and to ensure equal access for equal need right across the country”.  
In terms of allocations, all CCGs in the North East will receive a funding increase matching inflation in the next two years (2014/15 and 2015/16), which equates to 2.14% total growth compared with the previous year.  In monetary terms, this means an additional resource to the North East totalling £75m.