Health Bill [Lords]


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Mr. Stephen O'Brien: I will not press this to a Division. This exchange is on record, so those who are concerned about understanding the way forward have a clear idea that the maximum limit is expected to be three years, with most taking two. The Minister will be aware that our concern arises because of the Government’s track record in relation to pilots. We have often had pilots without the follow-through, so we now want to ensure that there is a clear programme that is expected not only to evaluate them well, perhaps with this reserve power that if one or two stray over the time they can have their evidence captured for the general application, but above all to make sure that there is an expectation of roll-out. On that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Sandra Gidley (Romsey) (LD): I beg to move amendment 171, in clause 11, page 9, line 14, at end insert—
‘(4A) The regulations must make provision that the pilot schemes are fully completed before a recommendation is laid before Parliament.’.
The Chairman: With this it will be convenient to discuss the following: amendment 172, in clause 11, page 9, line 17, at end insert—
‘(aa) for a review to be carried out that involves patients, staff, voluntary organisations and representative bodies.’.
Amendment 132, in clause 11, page 9, line 26, at end insert—
‘(d) the impact of direct payments on health inequalities.’.
Sandra Gidley: I extend my welcome to you in the Chair, Mr. Key. Amendments 171 and 172 aim to ensure that any pilots of direct payments are completed and would be reviewed, not only by an independent person, but also by patients, staff and voluntary and representative bodies. The number of amendments that have been tabled around review reflects a concern that, very often, pilots are not properly evaluated before they are implemented in the NHS. With regard to amendment 132, about which I shall talk briefly, it is right to consider the impact on health inequality, but all the evidence shows that most public health projects are poorly evaluated and there is little evidence about what works and what does not, although there are lots of well meaning projects out there. This is an attempt to focus attention on the review methodologies beforehand—we need to have in place, at the outset, some idea of what impacts we are looking for from direct payments.
10.45 pm
In the other place Lord Darzi said:
“Our general intention is that the pilots should be clearly defined from the start”—
the Minister has just confirmed that—
“I can put on record our intention to evaluate all the direct payment pilot schemes, not just some of them...We intend the personal health budgets pilot programme to run for at least three years with direct payments being used for at least two years. The one-year requirement is surpassed by our policy”.—[Official Report, House of Lords, 2 March 2009; Vol. 708, c. GC252.]
The Minister did not commit, however, to completing the pilot project, or formally to reviewing, or consulting upon, the outcome of the pilots. The consequences of such a major change to the delivery of health services, especially to the intended group of direct payment recipients, should really not be rushed. A number of concerns have previously been raised about that. Direct payments for social care have been in place for some time, but there are many differences between health and social care, which were highlighted in a previous sitting.
It would be useful to hear from the Government that there will be proper evaluation before a final recommendation is made to Parliament. The reason for including voluntary organisations and staff organisations is that there may be significant unforeseen impacts on NHS staff. It is always useful to consult with user groups—I hate the term “service user”, but it seems to be the current jargon—because they will be aware of the real-life implications that affect people on the ground, which are not always picked up using formal methodologies. These amendments are an attempt to seek the Minister’s reassurance that all these factors will be taken into account.
Mr. Stephen O'Brien: I am happy to support amendment 172, which relates to points that we have made before on LINks, and the hon. Lady includes staff groups and so forth. On amendment 171, we clearly have to get the balance right between making sure that the evidence base is there and that we are not unduly complicating things. I hope the Minister will give us an assurance that the pilot schemes will have a significant period to run before they are reviewed, because of the example we have had. To some degree, it is the mirror image of what we discussed on the last point.
Our amendment 132 concerns the Government’s figures on health inequalities. The reason I am very anxious to include the effect that direct payments have on health inequalities is partly because I think it is common sense that they will have a major effect and it would be something of a dereliction of duty if that were not properly taken into account and measured. We are conscious, as we consider the Bill, that the inequality gap in infant mortality rates has not reduced sufficiently to meet the Government’s target. The inequality gaps in male and female life expectancy at birth have both increased since the baseline, by 2 per cent. for men and 5 per cent. for women. If trends continue, the Government’s targets will also not be met. The relative gap between the routine and manual groups in the population has widened over recent years since the target baseline, and the number of sexually transmitted infections has doubled over recent years. Because of this inability to address the inequality and poverty that have affected areas even beyond health policy—health is a key weather vane in respect of inequalities—a proper measure of effectiveness of direct payments will be the impact that they make on this poor record.
Mr. Mike O'Brien: It is our intention that we should properly evaluate all these trials. These pilots are enormously important for assessing the impact of direct payments and it is right that we should have a full and comprehensive evaluation of them. The Liberal Democrats’ amendment would mean that we could not move forward with direct payments until all of the pilots had been completed. Some of the pilots may be delayed for all sorts of reasons. They may go beyond three years. They may have to carry on because of the health condition of individuals. Therefore we want some flexibility in the way in which we deliver the evaluation. We also need to make sure, however, that this evaluation is comprehensive. This is why we have a spread of 70 projects across a range of types of income, area and condition, so that we can have a proper assessment of where these projects would bring benefits from direct payments and where they would not. The hon. Member for Romsey is right to say that we need fully to evaluate this and that therefore we cannot try to rush through the evaluation. The evaluation, however, will be going on alongside the pilot. We do not necessarily always have to wait until the end before much of the work on evaluation takes place. One of the things we have to evaluate is how we get applications in. How well is it done? Who gets them? This can be done early on therefore and it can be evaluated well within the initial year. Therefore, we have a process of evaluation that evaluates the different stages of the pilot and identifies what works and what does not work. The main evaluation, however, will have to wait until the end so that we can look at the impact it has had on individuals.
We want to ensure that we involve all the key stakeholders—the patients, the staff, the voluntary organisations, the representative bodies—in looking at how direct payments work. It will be important in evaluating the impact of direct payments on particular conditions how not only individuals react to the handling of funding for direct payments but also how the various patient groups see the implications of direct payments on that condition. We may end up with an outcome that says that for particular conditions direct payments are beneficial, while for other conditions they are not. That is probably where we will end up, but let us see where it goes. We need to have a broad spread of the various types of direct payment pilots. We then need to have a full and proper evaluation of them. We need to involve the various patient groups, and that is our intention—it is not necessary to spell it out in the Bill. This would not be an effective evaluation of an important step for the NHS unless we involved the patient groups. In our policy statement “Personal Health Budgets: First Steps” we have specified that one of the principles of personal health budgets is to tackle inequalities and protect equality. Our advertisement for the evaluation, which was published in April, specifically asked research teams, who are now being recruited to conduct those evaluations, to consider how the impact of personal health budgets differs between patient groups, looking not only at health conditions but also socio-economic groups and patient characteristics such as ethnicity. The advertisement also asked teams bidding for the evaluation to consider how easily individuals from different groups can access personal health budgets and the support that they would need to do so. We are in the process of selecting the evaluation teams to do that. They will be responsible for ensuring that the views of all relevant stakeholders are considered in the evaluation process and that the impact of direct payments on health inequalities is comprehensively reviewed.
In summary, we want a broad spread in the size and nature of the different pilots. We want to ensure that we are looking at the different characteristics of both income and condition and that we have a spread, where we are able to get that, of particular conditions.
Mr. Horam: How many people will be involved in one particular pilot? What is the normal number that you would expect?
Mr. O'Brien: The broad concern would be to target direct payments at individuals who have a particular medical condition to see if they can manage the budget in a way that best delivers for them. We are also looking at small groups of people who want to work together to evaluate their budgets to see how that would operate. We want to look at a spread of different types of project to see what works. I suspect that we will find that certain things work and others do not. Unless we have a wide enough spread, geographically and otherwise, we will not be able to carry out that evaluation at the end of the three-year period.
Dr. John Pugh (Southport) (LD): What would constitute a good result of a review of a pilot? A valid point could be made that the socio-economic groups exploit private payments in different ways, some to greater benefit and others lesser, and, as has been suggested, that may accentuate health inequities. If there is an improvement in how NHS resources are used, if there is a wholesale uplift in health care and the efficiency in which provision by the state affects health outcomes, the Government could reconcile themselves to that—presumably in the same way that people sometimes argue for tax arrangements that may not produce more equity but produce greater productivity and benefits for the state as a whole. What is a bad outcome for a review? A degree of inequity could be introduced by the wholesale introduction of direct payments alongside a wholesale improvement in the efficient use of resources and perhaps wholesale improvements in health outcomes.
Mr. O'Brien: That is a perceptive and important question. If direct payments accentuate inequalities, then they have failed. It is likely that some individuals will be better able to manage budgets than others. That may well be attributable to their level of education and various attributes of their medical condition. We will have to evaluate this with care. Our aim is to ensure that we do not accentuate inequalities, particularly social inequalities, and also that we have an efficient use of resources, but the primary reason we are introducing this is to see whether we can better ensure that the treatment of individuals is carried out so that they will get the highest benefit. It is not either to save money or to spend more. The amount of money is not the key issue; the key issue is, what is the real benefit? If we can, as a result of this, ensure that health service provision for groups of people or individuals, because of the nature of a particular long-term condition that they have, is improved, then we are looking at a success.
The evaluation will be quite tricky; I do not hide that from the hon. Gentleman at all. We will need to balance a number of factors, and at the end of the process we will have to make some judgments as to how and in what circumstances to proceed. That will be the result of the evaluation, which will be open and published and engage the various groups, and then Parliament will have to make a decision about whether it wishes to extend beyond the pilots, and if so, in what form. I hope that with those explanations, the amendments can be withdrawn and we can proceed with direct payments.
11 am
Mr. Stephen O'Brien: I was particularly interested in the intervention by my hon. Friend the Member for Orpington, who was asking, in effect, what the scale of the pilots will be. I understand from the Minister that there are about 70 projects currently in mind, of which some will be individuals, some will be groups and some could even be quite large groups. The issue, which I think the Minister was hinting at, is not only that there is an effort to ensure that these pilots have a proper, realistic and tough research-based evaluation—which will be difficult, as the Minister made clear—but that it will be difficult, scientifically, to get a proper statistical distribution that will look across all the various types, conditions, circumstances, socio-economic backgrounds, and levels of educational attainment, and that will make a big difference. The big issue as I see it, which is why our amendment 132 is germane—I shall not press it to a vote, but we may want to come back to it on Report; it may even be something that the Government want to consider in order to improve the Bill on Report—relates to the answer the Minister gave. He confirmed my motive, which was that this is not intended to exacerbate, but to help to address health inequalities, although the primary purpose is on an individual basis, where the ultimate test will be whether this helps to improve patient health outcomes, rather than detract or be high-differential in terms of cost. That is the important area, and a secondary benefit would be to help to address health inequalities.
Mr. Mike O'Brien: I agree with most of what the hon. Gentleman said, but he said that the pilots can apply to a group of people, even a large group; that is not the intention. They are primarily for personal budgets, but they might extend, say, to a couple of people with a particular medical condition living together, or a group of people with a particular medical condition, who would be able to manage personal budgets and are, perhaps, living in the same accommodation. We are not talking about large groups here; we are talking primarily about personal budgets for individuals and those who might want to work together as part of a personal budget project. I do not envisage that a large group of people would decide to have the money and run their own health system; that is not where we are at all.
Mr. Stephen O'Brien: I am grateful for that answer to my question. It was the question I was asked on Friday when I visited an excellent care and nursing home in my constituency—Prospect House in Malpas. As there is a large collection of people there suffering from the same age-related conditions, there was a question mark as to whether there would be a pooled set of direct budgets, which would slightly defeat the aim of basing help on a personal needs-based assessment.
I am grateful for that intervention because it is clear the Minister has in mind that help is effectively to be directed at the patients on a personal basis. I hope that will clarify the matter for my hon. Friend the Member for Orpington. I will not press the amendment at this point, but I hope the Government will listen carefully and think about how to address this better in the final shape of the Bill.
 
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