Local healthcare services are being underfunded due to problems surrounding the fair allocation of £79bn of government cash, a report claims.
The National Audit Office (NAO) has said the Government is now struggling to allocate cash to local commissioners of healthcare in a fair way, with some regions receiving up to £137 per person less than their fair share and other £361 more.
Chair of the Public Account Committee Margaret Hodge branded ‘outrageous’ the way cash is allocated to councils, clinical commissioning groups (CCGs) and NHS England area teams – which receive separate funding allocations to commission services for their local population.
Over three quarters of councils and almost two-fifths of CCGs are currently more than 5% above or below their fair share of funding per person, the NAO said.
It uncovered significant differences in the level of funding handed to local services, with Corby receiving under-funded by £186 per person and West London above target by £508.
The watchdog added that Government funding decisions were being based on judgement about the changes local economies can tolerate rather than evidence. This came despite a report in 2011 from MPs on the Public Accounts Committee, which urged the Department of Health to commit to giving the right funding for an area’s needs within a set time period.
Amyas Morse, head of the NAO, said: ‘Funding allocations have reflected, among other factors, a desire not to upset local health economies by taking funding away or even by increasing it by less than inflation.
‘This has significantly slowed progress towards a fair distribution where funding fully reflects need across the country. The Department and NHS England need to consider carefully whether this approach is fast-moving enough to sustain hard-pressed local areas in the next few years.’
A Department of Health spokesperson said: ‘As the NAO recognises, there is a judgment to be made about how quickly areas can be moved to their target allocations without destabilising services. NHS England has taken steps to ensure every CCG benefits from protected health spending.’
