What is a fair share for practices and how is it calculated?
Answer A ‘fair share’ allocation for practices is where the amount of resource allocated to the practice is based on the relative needs of the their populations. The current system of allocation to practices is based on historical spending which does not fairly reflect the needs of their current populations. The Department of Health has produced a toolkit that allows PCTs to determine a ‘fair share’ allocation for practices, based on the relative needs of their populations. This toolkit uses the same formulae as is used to inform PCT allocations. For 2006/07, practice indicative budgets should continue to be based on historic activity, and practices will not be moved straight to their ‘fair share’ allocation. Rather, the ‘fair share’ allocation sets a target that practices should move to over time. The Department of Health has not stipulated a pace-of-change policy, and as such PCTs will need to determine this locally taking into account both the merits and risks of different paces in
