Select Committee on Welsh Affairs Minutes of Evidence


APPENDIX 5

Memorandum submitted by the NHS Confederation in Wales

PURPOSE

  To set out the basis of the response by the NHS Confederation in Wales to the extra non-recurring allocation of £9.5m made available by Mr. Win Griffiths, Parliamentary Under Secretary of State for the winter of 1997-98.

INTRODUCTION

  In October 1997, ministers announced an additional £9.5m for the NHS in Wales to:

    -  ease the pressures on the health and social care system during the winter period; and

    -  restrain the growth in waiting lists and waiting times.

  The money was allocated to health authorities according to 1997-98 weighted capitation shares and authorities were asked to submit copies of their plan for utilising the money to Welsh Office by 30th November 1997.

BASIS OF RESPONSE TO £9.5M

    -  The NHS Confederation in Wales wishes to acknowledge the minister's achievement in securing extra funding, as any additional money for the hard-presssed NHS is welcome.

    -  The NHS faces severe resourcing problems year on year and there is concern at the non-recurring nature of this extra money. The NHS in Wales is already facing considerable financial difficulties in 1997-98 and whilst the additional money will assist in the short term, it will not help the underlying financial position unless made available as a recurring basis. To assist members of the Committee in gaining an appreciation of the resource position within the Welsh NHS, a copy of the submission made by the Confederation in response to the Secretary of State's consultation on spending priorities for 1998-99 is attached.

    -  The lateness of the announcement is problematic and could cause difficulties in utilising the money as effectively as possible. This is because of issues associated with the lead time for the planning of schemes, the recruitment of temporary staff, etc. The Confederation suggests that the potential for "earmarking" such resources at the start of a financial year be explored, so that all parties involved can work towards the most effective application of funds.

    -  As was stated in the introduction, the money has been allocated for two separate sets of priorities. It is the Confederation in Wales' view that it might have been preferable to concentrate on the one priority of easing the emergency demand pressures on the health and social care system over the winter period, in the knowledge that this would have a beneficial impact on the service's ability to restrain waiting lists and waiting times.

    -  The Confederation supports the channelling of the resource through the NHS as being the most appropriate organisation for co-ordinating the necessary action; there is, however, an issue relating to the development of a truly intersectoral approach. The NHS would be interested in exploring the potential to "block back" some of the resource in future years for specific purposes that cross departmental boundaries-the funding of "heating vouchers" for the elderly is one such purpose, as many elderly patients are admitted to hospital during the winter months due to hypothermia. The timing of the allocations this year has prevented this approach being explored fully yet the NHS believes that there is merit in developing the concept further in the future.

CONCLUSION

  It is the view of the NHS Confederation in Wales that the receipt of the additional income is welcome, given the considerable pressures facing the service. There are real concerns relating to the non-recurring nature of the money and the lateness of the allocation. The Confederation wishes to emphasise the need for the resource to be recurring and to be "earmarked" accordingly early in the financial year. Members are also interested in exploring the development of a broader intersectoral approach to the issue to ensure that all agencies are involved in determining the most appropriate actions to be taken.

  8 December 1997


 
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