Statistical investigation of needs proxies

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Practice area: Health and social care | Public Policy
Client: Independent Commission on Funding and Finance for Wales
Published: 2010
Keywords: quantitative analysis

This research was undertaken for the Independent Commission on Funding and Finance for Wales (the ‘Holtham Commission’). Using the funding allocation mechanisms for health, local government and schools in England, the research shows that it is possible to replicate these funding outcomes with a high degree of accuracy by using much simpler needs-based formulae. The Holtham Commission concluded from this research that “it should be possible to generate a simple needs-based formula to replace Barnett that also retains a high degree of completeness”.