NHS England announces new local commissioning funding formula

A new funding formula for local health commissioning has been agreed by the board of NHS England following an extensive review.

The new system of funding is based on more accurate and detailed data and includes a deprivation measure specifically aimed at tackling health inequalities. The aim is to ensure that funding allocation accurately and fairly matches the needs of local populations.

Under the new arrangements, all clinical commissioning groups will receive a funding increase matching inflation in the next two years, with the poorest areas and those with fast-growing populations receiving even more.

The amount available to NHS commissioners will rise from 96 billion pounds to 100 billion pounds between now and 2015/16.

Paul Baumann, chief financial officer for NHS England, said: "This is a very testing period for the NHS and every pound we spend needs to be invested wisely to drive the best outcomes for the patients and communities we serve."

This comes after the organisation announced earlier this week that an additional 150 million pounds is to be made available to help improve patient safety and care.