Section 96 funding for general practices is an exceptional discretionary mechanism which commissioners may use to provide financial or other support to GP practices in specific circumstances.
It is not routine funding. It may be considered where there are significant risks to the sustainability of services or patient care, and practices may be required to demonstrate they have exhausted all other funding opportunities/availabilities.
Section 96 support is normally non-recurrent. Practices should also be aware that applications may include agreed performance monitoring arrangements, and that clawback provisions may apply where these are considered appropriate.
Who may be eligible?
Section 96 funding may be available to a person or organisation providing services under the terms and conditions of a primary medical services contract.
This means it may be relevant to GP practices and other providers delivering primary medical services under an eligible contract.
What can Section 96 funding be used for?
Section 96 funding may be considered for:
- financial assistance in exceptional circumstances;
- education or training financial assistance;
- other resources or financial assistance.
As a general principle, no more than £200,000, or three months’ funding, should usually be considered, unless there are exceptional circumstances.
Before applying
Before submitting a Section 96 application, practices should usually discuss the sustainability issue with their ICB contract officer.
Practices may also be asked to show that other possible funding routes have been explored, including any support available through the national Statement of Financial Entitlements or other relevant funding mechanisms.
Commissioners may expect evidence that ad hoc requests have been minimised through proactive support, where such support is available.
Information practices may be asked to provide
Practices may be asked to provide additional information to support their application. This could include:
- evidence that other funding opportunities have been explored or exhausted;
- confirmation that current contract payments have been reconciled and checked;
- recent certified accounts;
- current management accounts;
- cash flow information;
- declared earnings;
- details of the level of financial assistance requested;
- how long support is expected to be needed;
- what the practice has already done to address the issue;
- how short-term support will contribute to a sustainable long-term solution.
How applications are considered
All financial assistance must be considered in line with the principles of openness, fairness, probity and accountability.
Commissioners will need to demonstrate that any support agreed represents value for money and is in the interests of NHS England, local commissioners and patients.
Applications will usually be considered through the commissioner’s agreed governance process.
As part of that process, commissioners may consider:
- whether the proposed financial assistance is sufficient to achieve the intended objective;
- whether legal advice is needed;
- the overall risks and impact for both the provider and commissioner;
- value for money;
- whether a memorandum of understanding is required.
Memorandum of understanding
Where Section 96 support is agreed, practices may be asked to sign a memorandum of understanding. NHS England (delegated to the local commissioner) has the statutory duty to determine the payment terms.
This may include:
- the name and practice code for the practice receiving support;
- the aims and objectives of the funding;
- agreed outputs and longer-term outcomes;
- arrangements for performance monitoring;
- any clawback provisions;
- arrangements for regular review;
- eligible expenditure, where relevant;
- checkpoint meetings to review progress;
- supporting documentation or evidence that the practice must provide.
Key points for practices
Section 96 funding should be viewed as exceptional, discretionary and non-recurrent.
Practices considering an application should be prepared to explain:
- why support is needed;
- what risk exists to service sustainability or patient care;
- what other options have already been explored;
- why other funding routes are not sufficient;
- what level of support is being requested;
- how the support will help achieve a sustainable solution.
Practices should engage early with their ICB contract officer to raise any sustainability issues before submitting a formal application.
Further information
For full details, practices should refer to the NHS England Primary Medical Services Policy and Guidance Manual, section 11, Discretionary payments made under section 96 of the NHS Act 2006.
Read the NHS England Primary Medical Services Policy and Guidance Manual