Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, how the market forces factors for NHS funding are determined; and what assessment he has made of the effect of market forces factors on the funding allocated to each clinical commissioning group.

NHS England is responsible for funding allocations to clinical commissioning groups (CCGs). This process is independent of government and NHS England takes advice on the underlying formula from the independent Advisory Committee on Resource Allocation. CCG allocations take account of health inequalities and unmet need. The approach was updated in 2019/20 and further information can be found at the following link:

https://www.england.nhs.uk/wp-content/uploads/2019/01/note-on-ccg-allocations-2019-20-2023-24.pdf

NHS England and NHS Improvement are responsible for the design of tariff, including the Market Forces Factor. The approach and underlying data were updated in 2019/20. These changes have been introduced on a five-year glide path to ensure stability for the sector. Further information can be found in the guide available at the following link:

https://improvement.nhs.uk/documents/475/Guide_to_the_market_forces_factor.pdf