News / Ministers postpone BCF sanctions

Local areas that fail to meet their better care fund (BCF) plans will not have the performance-related element of the funding withdrawn in 2015/16.

The £3.8bn fund will include £1bn to be allocated to local areas based on performance. Half will be released in April 2015, with £250m dependent on performance against four national conditions, such as provision of seven-day services.

The other £250m will relate to the achievement of local and two national metrics – delayed transfers and avoidable emergency admissions – during 2014/15. The remaining £500m will be released in October 2015, depending on progress against all national and local metrics.

NHS England said ministers have considered whether failure to achieve national and local ambitions set out in council and clinical commissioning group plans should lead to sanctions in 2015/16. They decided that, given the complexity of developing plans for the first time, the performance-related funding would not be withdrawn should a local area fail to achieve its plan. However, local areas could lose control over how the money is spent.

Technical guidance on local plans requires all local agreements to include a contingency plan if a planned improvement is not achieved. NHS England guidance says if a local area achieves 70% or more of its plan, the performance-related funding can then be used to fund its contingency plan.

However, if the 70% threshold is not met, it may be required to produce a recovery plan, which will be peer reviewed by local government and NHS colleagues.

If the local Health and Wellbeing Board, NHS England and the local government peer reviewer agree the recovery plan, the held-back funds will be released.

If the plan cannot be agreed, NHS England will direct how the funds will be used.