ARRS funding is to be added to allocations for ICBs rather than drawn down separately, NHS England has said in a letter to ICBs.
The letter, which is an update to the GP contract agreement, said that some ARRS funding in 2024/25 was allocated to ICBs on a drawdown basis in line with claims, and that all GP ARRS funding was allocated this way.
However, in 2025/26, all ARRS funding will be added to allocations for ICBs, where there will not be a requirement to draw this down separately.
ARRS funding has previously been part of the system development fund (SDF). However, earlier this year it was revealed that most of the SDF funding ringfences would be removed and instead funding moved into core allocations from 2025/26.
It was stated in March that ARRS funding was ‘still in discussion’ as to whether it would remain in an SDF allocation or move to ICB core allocations.
The letter published today (17 April) said: ‘In 2025/26, all ARRS funding, including for GPs, will be added to allocations for ICBs. There will not be a requirement to draw this down separately. The value of this funding in 2024/25 was £534 million for the ARRS scheme and £82m for the GPs in ARRS scheme.’
It added that the growth in ARRS entitlements now form part of the £889m increase in contract funding as a whole.
It said that ICBs ‘should still continue to issue this funding to PCNs in line with the PCN DES’.
However, in a document published in February on revenue and contracting guidance for 2025/26, NHS England said when funding was transferred to ICB allocations, this was ‘no longer ringfenced’ and that there were ‘no additional performance requirements beyond those set out in the 2025/26 priorities and operational planning guidance’.
Pulse PCN has asked NHS England to confirm if this means ICBs will now be able to set the ARRS budgets for their PCNs.
Ruth Rankine, director of primary care at the NHS Confederation said: 'This change has the potential to reduce red tape which our members would welcome.
'Recognising the strain on finances across the system and the drive to get the most out of every public pound, it is critical that ICBs show leadership to protect funding in primary care and avoid a 'right drift’ of spending, which would undermine the government's drive to move more care closer to home.
'The NHS Confederation will continue to work with both our Primary Care Network members and our ICS Network members to ensure this risk is minimised.'
The recent contract also confirmed the GP ARRS role, which was added to the scheme in October 2024, would continue into the next financial year (2025/26). It increased the funding for the role and removed the ringfence around the £82m funding that was initially to be used to recruit 1,000 GPs.
Data released last week showed there was now 1,503 GPs employed through the scheme. However, it was also revealed that just under half of PCNs have not hired an ARRS GP yet.
Earlier this year it was revealed that millions of pounds from SDF was used to meet other financial pressures across 26 ICBs in 2023/24.
Last year, Pulse PCN revealed that some PCNs lost out on additional money due to variation in NHS England's advice to ICBs regarding bidding for unspent funding for ARRS.
It was also revealed that PCNs had underspent on ARRS funding by £45m in the 2023/24 financial year.