Question to the Department of Health and Social Care:

To ask Her Majesty’s Government what assessment they have made of the additional costs to the NHS of (1) Care Quality Commission fee increases, (2) the cost of pension changes announced in the budget as a result of re-evaluation, and (3) the decision of NHS Property Services to charge market rates for the use of NHS buildings, in each financial year from 2016–17 to 2020–21.

Government policy requires the Care Quality Commission (CQC) to move towards fully recovering the chargeable costs of regulating health and adult social care in England. The amounts that the CQC charges to providers differ depending on the cost of regulation in each sector and how close they are currently to full cost recovery.

Following the Government’s Spending Review, the CQC recommended a two-year trajectory to reach full cost recovery, taking into account the level of grant-in-aid available to the organisation for 2016/17 to enable the CQC to fulfil its statutory functions. The Secretary of State consented to the CQC’s proposals. The Secretary of State also announced that the Government will make available extra funding for general practice to reflect a number of increasing cost pressures, of which increased CQC fees are a part.

The Government estimates the total impact of the change in the discount rate will be an overall increase in the cost of employer contributions across the major public service pension schemes of £2 billion a year. Until the results of the next valuation of the NHS Pension Scheme, which commenced this year, are known we will not know the total impact on employer contribution rates, including the change to the discount rate announced in the Budget 2016. We expect to have the results of the current valuation by Budget 2018; the results of this valuation will set the cost employers pay from 2019/20.

In regards to NHS Property Services’ charges to the National Health Service, overall, these will increase by in the region of £60 million, though the impact on individual occupiers will vary. Some increasing, and some not increasing. The Department has agreed with NHS England to meet any net increase in costs at a national level and NHS England will allocate funding to clinical commissioning groups (CCGs) to ensure all cost changes are fully mitigated in 2016/17. General Practitioners will receive adjustments for rental changes through the normal reimbursement arrangements. Arrangements in relation to funding adjustments for 2017/18 and beyond will be considered in conjunction with NHS England and NHS Improvement and we anticipated will be communicated by the end of the first quarter of 2016/17.