General Practitioners: Finance

The Carr-Hill formula is outdated, as the formula is based on data that is 25 years old in some cases. It uses the expected workload of general practices (GPs) to determine the distribution of funding for GPs across England. Currently, GPs serving more deprived areas receive on average 10% less funding per patient when adjusted for need than those in less deprived communities, despite having greater health needs and significantly higher patient-to-GP ratios.

We recognise the importance of ensuring that funding for core services is distributed equitably between practices across the country. My Rt Hon. Friend, the Secretary of State for Health and Social Care, announced on 25 June that, through the 10-Year Health Plan, the Government will review the Carr-Hill formula with the aim of ensuring that resources are targeted where they are most needed.

The review, conducted by National Institute for Health and Care Research, has now commenced. It will draw on a range of evidence and advice from experts, with a focus on how health need is reflected in funding.