5. ACTIVITY AND PERFORMANCE
5.1.22 Can the Department show trends in components
of HCHS inflation indices in each year from 1997-98 in as much
detail as possible? (Q61)
Answer
1. The trend in the hospital and community
health service (HCHS) inflation index is shown in table 61.
The index is calculated by combining the indices for pay inflation
and price inflation.
Pay
2. Pay inflation is calculated as a weighted
average of the increase in unit staff cost for each of the staff
groups within the HCHS sector. The pay inflation figures for 2006-07
included some methodological changes to further improve the index.
The 2007-08 figures are presented on the same basis. Weightings
are now based on numbers in staff groups rather than share of
pay bill which was previously used. Figures for 2006-07 and 2007-08
are therefore not directly comparable with previous years.
3. This form of weighting (Laspeyres) is
a more widely recognised method and is often used in indices produced
by the Office for National Statistics.
Prices
4. HCHS price inflation (ie the non-pay
component) is measured by the Health Service Cost Index (HSCI).
The HSCI weights together price increases for a broad range of
items used by the health service—for example, drugs, medical
equipment, fuel, telephone charges—using weights derived
from expenditure on these various goods and services reported
in financial returns.
Table 61
TRENDS IN COMPONENTS OF THE HOSPITAL AND
COMMUNITY HEALTH SERVICE (HCHS) INFLATION INDEX
|
| | 1997-98
| 1998-99 | 1999-2000
| 2000-01 | 2001-02
| 2002-03 | 2003-04
| 2004-05 | 2005-06
| 2006-07 | 2007-08
|
| | %
| % | %
| % | %
| % | %
| % | %
| % | %
|
|
| Total staff pay | 2.5
| 4.9 | 6.9
| 7.2 | 8.3
| 5.0 | 7.3
| 4.5 | 4.7
| 4.1 | 3.5
|
| Review body staff | 2.2
| 5.1 | 7.6
| 7.5 | 9.4
| 5.1 | 8.3
| 3.7 | 4.4
| 3.5 | 3.3
|
| Non-review body staff | 3.5
| 3.9 | 4.5
| 5.8 | 6.0
| 4.8 | 4.1
| 7.4 | 6.0
| 6.4 | 4.6
|
| Prices | 0.4
| 2.5 | 1.2
| -0.3 | 0.1
| 1.0 | 1.5
| 1.0 | 1.9
| 3.0 | 1.8
|
| HCHS total | 1.7
| 4.0 | 4.5
| 4.2 | 5.1
| 3.5 | 5.2
| 3.4 | 3.7
| 3.7 | 2.9
|
|
| Source: |
Financial Planning and Allocations, DH
|
| Footnotes: |
| 1. Pay inflation figures include NHS foundation trusts.
|
| 2. The remit of the Nurses and Other Health Professions Review Body changed with the introduction of Agenda for Change. The review body staff group from 2005-06 includes healthcare assistants while prior to 2004-05 they were included within non-review body staff. Therefore the series review body staff and non-review body staff are not directly comparable from 2005-06.
|
| 3. The methodology for the pay inflation index was updated in 2006-07, therefore pay figures from 2006-07 are shown on a different basis to prior years.
|
| 
