Distribution Formula

With a growing national programme, it is important to have a distribution formula for DFG funding that is based on readily available data as well as being transparent, intuitive and fair. The current approach is based on a confusing mix of methodologies and historical allocations.

We suggest a new formula based on the number of people with a disability, income (from benefits data), tenure split (from MHCLG data) and regional building costs. Further sensitivity analysis is required to consider the impact across regions and all local authorities.

Adopting any objective formula will inevitably lead to ‘winners’ and ‘losers’ which could be mitigated by implementing the transition over a number of years.

Recommendation:

  • That a new allocation formula is established for the next Comprehensive Spending Review and applied incrementally over the implementation period.