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Warrington's NHS Funding Problem

Posted by David Mowat, MP for Warrington South, at 08:41, Tue 27 July 2010:

I’ve never used this website before so I don’t quite know how well this will work.

For my first post, I thought I would discuss the NHS in Warrington. I have been asking some questions of the Department of Health recently, as those who are signed up to alerts on theyworkforyou.com will know.

I have been absolutely astonished by the answers I have received: Warrington Primary Care Trust (PCT) was underfunded by £4 million last year and that gap will widen next year.

Let me explain how this turn of events has come about. Warrington PCT receives a block grant from the Department of Health every year. This lump sum is calculated by taking into account the levels of income and population in the area served by each PCT. However, in order to avoid large rises or falls in the level of cash given to a PCT, the Department of Health applies a second formula known as the Direction of Travel Formula (DTF). The effect of DTF is to “smooth” the allocations so that rather than having a steep rise one year and then no rises in the next 3 years, there would be a gradual rise over the four years.

Unfortunately for towns with rapidly increasing populations like Warrington, the “smoothing” actually has the effect of withholding money from the town. The “distance from target adjustment” figure represents the difference between what the formula says Warrington PCT should be due and the cash amount that is actually paid. In Warrington’s case, the Distance from Target figure was £4.1 million this year and will be £4.3 million next year.

Putting those figures into context, £4 million would pay for an extra 160 nurses for Warrington Hospital; or new cancer drugs; or a new medical centre. This is money that the Government itself is saying Warrington should be paid and yet it is not being paid.

As you may be aware, the coalition Government has announced that spending on the NHS is guaranteed to rise above and beyond the rate of inflation for the lifetime of this Parliament. I am determined that Warrington will see the benefit of these rises

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