Appendix 2

Use of the ID 2000 for Resource Allocation by the Government

The ID 2000 has been widely used to allocate resources both by central and local government as well as by voluntary bodies and charities. The Government uses the ID 2000 as the primary, but not the sole, basis for the allocation of resources to deprived areas. Some of the uses are listed below:

The Office of the Deputy Prime Minister

The Neighbourhood Renewal Unit of the ODPM uses the ID 2000 to inform its funding for several programmes.

The Neighbourhood Renewal Fund (NRF) is distributed to districts that fall into the 50 most deprived on any of the six district level summary measures of the ID 2000 – a total of 81 districts. In addition, seven extra districts are included which were in the 50 most deprived areas on any of the four district measures of the ILD 1998.

The ODPM’s Neighbourhood Management Pathfinder Programme also targets areas selected from among authorities that include more than one ward in the most deprived 10% of wards in England as measured by the IMD 2000 (excluding authorities with a ‘New Deal for Communities’ Partnership).

The Department of Trade and Industry

The Single Regeneration Budget, which since 1994 has approved over 900 regeneration schemes and funded over £5.5 billion worth of programmes, has along with the Land and Property programme been subsumed into the larger Regional Development Agencies’ Single Pot fund as of April 2002. While the OPDM is still the largest single contributor to the fund, the Department of Trade and Industry (DTI) has since November 2001 had

overall responsibility for all grant in aid to Regional Development Agencies (RDAs). The DTI bases these allocations upon the ID 2000 as well as certain labour market indicators. The 2000 Spending Review, which expanded the administrative role of the RDAs, determined funding from 2001-2004 for all domestic regeneration programmes using the ID 2000. In 2002-03, £430 million or roughly 28% of the £2.55 billion ‘single pot’ budget was allocated based upon the ID 2000.

The DTI also uses the ID 2000 for allocating funds under the Small Business Service (SBS), established in 2000 to encourage enterprise in deprived areas. In 2001-02, £7.5 million of SBS Core Services funding was based on the ID 2000. Administered by the SBS, the Phoenix Fund representing £96 million over four years to provide support for entrepreneurs from disadvantaged groups, allocated £15 million in 2001-02 and £19

million in 2002-03 based upon the ID 2000.

Department for Education and Skills

The Department for Education and Skills’ (DfES) expenditure is allocated according to a variety of methods. Expenditure on the programmes listed below, none of which existed prior to 1998–99, was allocated with reference to the ILD 1998, and now the ID 2000.

The Nursery Education Grant is provided by the government, and managed by the Early Years Development and Childcare Partnership to ensure that children between the ages of 3 and 5 have access to a good quality Foundation Stage education.

The Neighbourhood Support Fund funds around 650 community-based projects in 40 of the most deprived local authorities in England. Targeted at young people between the ages of 13 and 19, its aim is to develop the skills and confidence of young people so that they are better able to overcome barriers to learning and work.

Funding for the Neighbourhood Nurseries Initiative (NNI) was allocated in the Spending Review 2000 using the ID 2000. Local education authorities received an allocation of funding according to the number of wards within their area that fall within the 20% most disadvantaged wards in England as measured by the IMD 2000,

weighted by the population of 0 to four-year-olds.

The Sure Start programme, designed to address child poverty and social exclusion, received £452 million in funding from 1999-2002 with areas being selected for the first 5 waves of programmes on the basis of the ILD 1998. The sixth wave of programmes, announced in April 2002, asks applicants to identify deprived wards based upon the ID 2000.

The preventive element of the Children’s Fund amounts to £380 million for three years

(2001-4) to fund services to prevent children and their families experiencing poverty. The first wave of the fund selected from the areas with the highest child poverty levels, with applicants being asked to justify their selection of area with reference to measures of deprivation including the ID 2000 or children in benefit households.

Department of Health

The Department of Health commissioned SDRC to produce summaries of the ID 2000 at PCG and Health Authority levels. These were released in the Compendium of Clinical and Health Indicators 2001. 52 An ongoing piece of work for the Department of Health, making new recommendations on resource allocations formulas for NHS services, has used various domains and indicators from the ID 2000. One of the important motivations for this work was to enable formulasto be derived that did not rely on the census but instead contained data contemporaneous with the point of allocation. The ID 2000 work has been key to achieving this goal.

Department for Transport

The Urban Bus Challenge, begun in 2001, will receive £46 million over the next three years and will focus on urban areas suffering from multiple deprivation as measured by the ID 2000.

The Department for Culture, Media and Sport

Sponsored jointly with the Department for Education and Skills, the Capital Modernisation Fund for Space and Sport seeks to provide in deprived areas around 300 new sports and arts facilities in primary schools. The Government has allocated £75 million for the programme through 2004. Sixty-five local education authorities, selected using a number of indices of educational, socio-economic, sporting and cultural deprivation including ID 2000, have been invited to participate in the scheme.

The Department has also allocated £40 million through 2004 to the Arts Council of England for the establishment of 16 pilot Creative Partnerships in deprived areas to provide opportunities for young people to experience artistic and creative activities. The ID 2000, along with other measures of economic and educational deprivation and an assessment of cultural deprivation, was used in determining these areas.

Many of the grants made by the National Lottery funding bodies include tackling multiple deprivation as an objective and they often use the ID 2000. This is illustrated by the £169 million Fair Share scheme, which explicitly targets areas based on the ID 2000. More generally, since the National Lottery began, 41% of the total allocation of funds has gone to the 50 most deprived local authorities in England.

HM Treasury

Stamp duty on property and land transactions below certain thresholds were reduced in deprived areas in the Finance Act 2001. Identification of these areas was based on the ID 2000 for England.

The Home Office

The Home Office invested £2.9 million in 2001-02 and £5.8 million in 2002-03 in a scheme to improve the security of local shops in deprived areas selected with reference to the ID 2000. Also, police grant (£3.9 billion in 2001-02) and probation area funding (£500 million in 2001-02) are allocated based upon formulas that take into account relative deprivation based upon the ID 2000.

The Ministry of Defence

Since 1999 the Ministry of Defence (MOD) has used the ID 2000, along with other measures of social conditions, to inform decisions about unit moves, site rationalisations and investments into new facilities. The MOD does not, however, allocate expenditure with sole reference to the ID 2000 or other measures of relative geographic deprivation.

Nonetheless the MOD does sponsor a number of the activities in areas of high deprivation. The Skill Force programme – which uses retired military instructors to provide vocational training to young people – has been implemented in 47 schools in 11 areas, all of which are in areas that are among the most deprived in the UK.

The Countryside Agency

SDRC produced a detailed report for the Countryside Agency (CA) in 2000. 53 This contained a thorough analysis of the ID 2000 in relation to rural wards and districts. The rural ward classification on which this report was based is now part of Neighbourhood Statistics and the report has been used extensively by the CA and other organisations interested in rural deprivation.

Source: ODPM, Stage 1 Consultation Report