To implement Option 1 below in respect of the consultation on the
methodology used to calculate the deprivation funding supplement
and the associated base funding rate.
Option 1: Reduce all bands of deprivation by 3p, thus removing the
lowest band, and increasing the base funding rate accordingly by 3p
on all hours. Base rate £4.01, Deprivation Band A 54p, Band B
7p and Band C 4p
This option provides funding stability to providers as there will
be no change to the overall funding received by providers at a time
when the market is already experiencing financial challenges, and
also has the following benefits:
(i) A higher base funding rate of £4.01 for all
providers,
(ii) An increase to the monthly base rate payments received by
providers whilst decreasing the amount of quarterly paid
deprivation, thus a small cash-flow advantage,
(iii) Easier for providers to calculate their base income.