News / CCGs face running cost reductions
NHS England chief financial officer Paul Baumann has confirmed that clinical commissioning group running cost allowances will fall in 2015/16.
In a letter to commissioners, he said that in 2014/15 the quantum allocated to CCG running costs as a whole will remain steady at £1.35bn. This translates to a per head allowance of £24.73.
Mr Baumann also published indicative figures for 2015/16 and the following three years. There will be a 10% reduction in the total amount available for running costs in 2015/16. This will fall to £1.21bn or an allowance of £22.07 per head. NHS England area and regional team running costs would also be cut by 10% in 2015/16.
He added: ‘Unlike programme spend allocations, there is no “pace-of-change” for running cost allowances and so any changes in the population of a CCG are immediately reflected.
‘The indicative overall running cost envelope for 2015/16 reflects the spending round settlement for the Department of Health group on running costs as a whole.’
He said indicative running cost allowances for 2016/17 to 2018/19 would support strategic planning. These assume the national amount available will remain at 2015/16 levels, with a per head allowance adjusted for population growth.
But Mr Baumann warned that these figures would be vulnerable to changes, including in the total running costs resources available.
Charles Alessi, interim chair of CCG member body NHS Clinical Commissioners, said: ‘CCGs must be sufficiently resourced to enable them to focus energies on service transformation and on realising the significant efficiency challenges expected of them. The reduction in running costs announced for 2015/16 will not help CCGs to achieve this.’
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