Department of Health (National): More funding to drive NHS improvement

The Government today set out the next steps in its plan to reform the NHS and that £89 billion will go direct to PCTs for frontline services – an increase of £2.6bn in cash, equivalent to a three per cent increase in funding for the NHS.

‘Liberating the NHS: Legislative Framework and Next Steps’, published today, reaffirms the Government’s commitment to the reforms set out in July in its White Paper ‘Equity and Excellence: Liberating the NHS’. It shows how the Government has developed its thinking in the light of the 6,000 responses received, and sets out a timetable for implementation. It also paves the way for the introduction of a flagship Bill in the New Year.

The reforms will create an NHS that puts patients at the heart of everything it does, focuses relentlessly on improving healthcare outcomes and liberates professionals at every level to take decisions in the best interests of patients.

The response to the consultation demonstrated support for the principles set out in the White Paper. The feedback has been carefully considered and the Government has listened to concerns, deciding on changes including, for example, that:

• commissioning of maternity services will now sit with GP consortia; and
• councils’ formal scrutiny powers will be extended to cover all NHS-funded services, and local authorities will have greater freedom in how these are exercised.

Already, 52 GP consortia have signed up as pathfinders to manage their local budgets and commission services for patients. In total, the pathfinders involve 1860 GP practices and cover around 25% of the population – some 12.8 million people.

Also published today are the PCT Allocations and NHS Operating Framework for 2011/12. This package together sets what the NHS must do next year in order to secure a patient-centred, outcome-focused service.

The Operating Framework sets out what NHS organisations must focus on in 2011/12 to prepare for transition to the new system of GP commissioning. This will include:

• the need to continue to improve performance, for example on waiting times;
• Primary Care Trusts (PCTs) streamlined into clusters, working with GP practices and emerging GP consortia on commissioning as well as reducing running costs; and
• the role of the NHS Commissioning Board, which will operate in shadow form from next year to ensure an efficient and effective transition.

The Operating Framework also asks the NHS to prioritise the implementation of earlier diagnosis for cancer patients, potentially saving thousands of lives.

Today’s announcements are backed by £89 billion of funding for PCTs to spend next year on commissioning services for patients – an increase of £2.6 billion from 2010/11. This will include money for commissioning dentistry, ophthalmic and pharmacy services as well as, for the first time, money to support social care.

This increase of 3 per cent demonstrates the Government’s commitment to protecting health funding in a tough financial climate.

Commenting on the Operating Framework and PCT allocations, Health Secretary Andrew Lansley said:

“We believe that the NHS is a great national institution and support its founding principles – that care is free at the point of use to everyone, based on need, not ability to pay.

“Our commitment means that funding for the NHS will increase every year. I am proud that we are living up to our commitment to the NHS – the total allocations to Primary Care Trusts will increase next year by 3 per cent on average, with not less than 2.5% and up to 4.9% increase for individual PCTs. It provides a strong platform to sustain and improve NHS services.

“But in order to meet rising demands and deliver improving outcomes for patients, we need to get the best value from our protected health budget and make every penny count for patients. That means cutting out waste, reducing bureaucracy and simplifying NHS structures so that we are able to invest more in improving frontline care.

“There will be no let up in our drive to improve patient safety, outcomes and patient experience. The Operating Framework is an important roadmap to help the leaders of the NHS realise our ambitious aims to improve patient care.”

Commenting on ‘Liberating the NHS: Legislative Framework and Next Steps’, he continued:

“Today is a launch-pad for the NHS we all aspire to. One that is focussed increasingly on what matters: better results for patients.

“We have listened extensively to all views about our health reforms. And now, with thanks to some 6,000 responses, we are publishing a paper that sets out with clarity and with direction why and how we need to deliver long-lasting reform in the NHS.

“Our reform agenda is on track. We are encouraged by activity taking place at a grass-roots level, with 52 GP pathfinder groups already in place and many more soon to follow. We also expect similar shadow forms of Health and Wellbeing Boards to emerge.

“‘Liberating the NHS: Legislative framework and next steps’ sets out the policy for reform in detail. It answers the questions and sets the framework for reform. The Health and Social Care Bill will be presented early in the New Year. Its purpose is clear: a more responsive, patient-centred NHS, which achieves outcomes that are among the best in the world. It provides certainty, through a clear legislative framework to support that ambition, with increased autonomy and accountability at every level in the NHS.”

NHS Chief Executive Sir David Nicholson said:

“The coming year will demand much from the NHS. The challenge for us is to maintain and improve quality, keep strong financial control and create a new system that improves outcomes for patients. The Operating Framework sets out priorities for the NHS that will support and enable organisations to remain focused on their core purpose of delivering improved quality for patients while creating real energy and momentum for change.”

Notes to editors

1. The NHS White Paper Liberating the NHS: Equity and Excellence and the associated consultations were published in July 2010. All documents including the Command Paper,Liberating the NHS: Legislative Framework and Next Steps can be found at:
   www.dh.gov.uk/liberatingthenhsnextsteps
2. More details on PCT Allocations for 2011/12 can be found at: www.dh.gov.uk/allocations
3. The NHS Operating Framework for 2011/12 will be available at 4:00pm at:www.dh.gov.uk/operatingframework
4. For further information, please contact the Department of Health press office on 020 7210 5221.

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