Poor health + poor area = poor funding

Jul 31 2005 By Robert Weatherall, Sunday Sun

Long wait for more cash as well-off areas cushioned

The funding targets for each Primary Care Trust are set by an independent body established by the Department of Health. The Advisory Committee on Resource Allocation has the final say on how much money Easington should get.

However, Department of Health - DoH - officials refuse to increase the overall budget enough for all trusts - PCTs -to be fully funded.

Instead they say that those PCTs which are being over-funded will have cash taken away from them and redistributed towards less-well-off PCTs such as Easington.

However DoH chiefs say the money will be redistributed over a number of years rather than all at once so that well-off PCTs do not suffer a major cash withdrawal in one year.

A spokesperson for the DoH said: "The allocations provide substantial increases for all PCTs. Between 2002/03 and 2007/08 PCT funding will have increased by 56 per cent.

Following the introduction of the new formula in 2002, despite progress, some areas were still not receiving their fair share of funding.

"At this time, Easington PCT was 22pc below its fair share. For the 2006/08 revenue allocations, it was decided to move PCTs more quickly towards their fair share of funds.

"As a result of this allocations' round, no PCT will be more than 3.5pc below its fair share by the end of 2007/08. Easington PCT is one of these.

"Easington PCT will receive allocations of £156.1m in 2006/07 and £178.4m in 2007/08. These represent an increase of £43.5m or 32.3pc over the two years, compared to the national average of 19.5pc.

"These resources should deliver significant benefits. However, in addition to moving PCTs closer to their fair share of the allocation, we must balance the need to maintain continuity and stability across the nation."