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<p>The allocation of funding to clinical commissioning groups (CCGs) to support them
in commissioning services for their local population is one of the key duties of NHS
England. The approach NHS England must take in setting allocations is outlined in
the mandate from the Department which says:</p><p><em> </em></p><p>“The Government
expects the principle of ensuring equal access for equal need to be at the heart of
NHS England’s approach to allocating budgets.”</p><p> </p><p>The approach is also
informed by NHS England’s duty to reduce inequalities to accessing services and the
outcomes of care.</p><p> </p><p>These two aims are reflected in the target formula,
which produces a target allocation or ‘fair share’ for each area, based on a complex
assessment of factors such as demography, morbidity, deprivation, and the unavoidable
cost of providing services in different areas. The NHS England Board has agreed a
pace of change policy that seeks to bring all CCGs to target funding over time.</p><p>
</p><p>The formula is based on independent academic research and is overseen by an
independent external group, the Advisory Committee on Resource Allocation, which provides
advice to the Secretary of State for Health and Social Care and the Chief Executive
of NHS England.</p><p><strong> </strong></p>
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