Sharing nicely

There's a small storm brewing over the government's proposed approach to funding allocations as regards inequalities, as HSJ has published details of how this works out in practice. It focuses on how funding allocations are made up and the proportion that is allocated on the basis of health inequalities,which has been cut from 15% to 10% in the 2011/12 allocation. The research was done for Public Health Manchester and was included in its submission to the Health Select Committee's inquiry into Public Health. Other submissions to the Committee have been critical of how far the government is including recommendations from the Marmot Report: the King's Fund and BMA's submissions make similar points. However, the report from Public Health Manchester does make clear in numbers who the winners and losers could be under the new arrangements. A DH spokesman quoted by HSJ rather suggested that perhaps this was just one (not entirely correct) interpretation of funding allocations. In the recent past, both the Audit Commission and the National Audit Office have expressed doubt as to the value for money that old arrangement has offered, arguing for better targetting and clearer evaluation of outcomes. The new design for the health premium, based on incentivisation, seems like a response to this criticism. Whether it works for reducing inequalities is another thing, though.