Cross-border Health Care (England and Wales)

Roger Williams Excerpts

Tuesday 25th June 2013 Commons Chamber

[Anna Soubry]

I do not doubt for one moment the veracity of what my hon. Friend has told me about what he, in turn, has been told. That is a substantial amount of money and it would go a long way to explaining part of the deficit. These are terribly important matters.

The funding formula has been raised yet again. The argument advanced by many Members on both sides of the House is that the formula does not take account of the relatively high cost of delivering services in rural areas or reflect the fact that many rural areas such as Herefordshire have relatively older populations. I have had a number of conversations with hon. Members who make exactly the same complaint as my hon. Friend.

I am reliably informed—this point is important—that allocations to individual clinical commissioning groups, which are made up of the GPs and other clinicians who now commission services locally, and the formula that is used to decide what those allocations should be, are the responsibility of NHS England. I am not seeking to pass the buck, but it does bear that responsibility. In making those allocations, NHS England relies on advice from the Advisory Committee on Resource Allocation. ACRA provides advice on the share of available resources provided to each CCG to support equal access for equal need, as specified in the mandate given by the Secretary of State to NHS England.

Therefore, NHS England does not set income for CCGs on an equal cost-per-head basis across the country. Instead, allocations follow an assessment of the expected need for health services in an area, and funds are distributed in line with that, meaning that areas with a high health need should receive more money per head. The calculation is based on the age of the populations, relative morbidity and unavoidable variation in cost. The objective is to ensure a consistent supply of health services across the country. The greater the health need, the more money is received because the more health services are needed.

I know that some hon. Members just do not accept that that is the reality with the allocations to their CCGs and, in effect, to their constituencies. NHS England plans to review the funding formula for 2014-15 and the following years better to reflect the needs of local communities and enable the best outcomes for local people. Perhaps there is hope in that. Obviously, I must say quickly that I cannot make any promises.

If anybody would like to intervene, we do have the time. Hon. Members often want to make a point, but do not feel that they can make a speech.

[Roger Williams (Brecon and Radnorshire) (LD)]

I thank the Minister for her kindness and I am sorry that I was not here at the start of the contribution from the hon. Member for Hereford and South Herefordshire (Jesse Norman). Hereford hospital is key in delivering medical services to people in my constituency in Wales. If it had not been for the co-operation of my predecessor, Richard Livsey, the rebuilding of Hereford hospital might not have taken place, because it needs patients from the east of Wales too.

[Anna Soubry]

I am grateful to my hon. Friend for that intervention. My officials will listen to the debate and read it in Hansard. All the points that have been made about Hereford hospital—equally important points could be raised by others about the effect on other hospitals—must be considered, because they are important. It would not be right or fair if hospitals felt that they were suffering as a result of a system that is basically not fair through no fault of their own.