Commentary on Sections Financial arrangements: England and Wales Section 8: Funding of Primary Care Trusts
66.Section 8 provides for PCTs to be funded direct by the Secretary of State.  It replaces the existing section 97C under which PCTs are funded by HAs.  The provisions in the new section 97C (1), (2), (7), (8) and (9) mirror the existing provisions in section 97 for the funding of HAs by the Secretary of State.  They cover respectively: the funding of PCTs; taking account of general Part 2 expenditure in determining amounts to be allotted towards main expenditure; the variation of allotments in the course of a year; the earmarking of allotments for a particular purpose, and the payment of capital charges; and the keeping of records.
67.Section 97C (3) to (6) mirrors existing provisions for HAs, to allow performance payments direct to PCTs.  The provision allows the Secretary of State to increase the allotments made to a PCT if they have, over a period notified to the PCT, satisfied objectives notified as objectives to be met, or performed well against criteria notified to them as criteria relevant to their satisfactory performance of functions.  The additional sums may be subject to conditions.  If those conditions are not met the Secretary of State may reduce the PCT’s allotment, in the current year or following years.