NHS England board member Lord Adebowale has described the policy of imposing cuts to mental health and community trusts, which are a fifth higher than those for other sectors, as “bordering on laughable”.

The non-executive director, who is also chief executive of the mental health charity Turning Point, has broken ranks with NHS England to criticise its decision to apply a differential tariff deflator to non-acute trusts in 2014-15.

Speaking to HSJ, Lord Adebowale said he hoped to examine the tariff decision as part of his work as chair of NHS England’s new parity of esteem committee. He said: “It is a concern and something I have raised at every level.”

NHS England and Monitor have justified their decision on the grounds that the £150m cost of implementing the recommendations of the Francis report did not impact on non-acute trusts. Lord Adebowale described this claim as “astonishing”, saying of the policy: “My personal view is it’s unacceptable, not tenable and bordering on laughable.”

“We need to help people out of a corner here which they seem determined to back themselves into,” he said. “We can’t have a situation where a report like Francis is used to cut money.”

The two national organisations share joint responsibility for the payment system. Their decision effectively sets higher levels of efficiency savings for non-acute trusts than their acute counterparts: acute trusts will see their tariff price cut by 1.5 per cent whereas mental health and community trusts face a reduction of 1.8 per cent.

Health minister Norman Lamb described the two bodies’ decision as “flawed and unacceptable”. They have however since urged commissioners to use their freedom to set local prices.

Lord Adebowale said he hoped the new parity of esteem committee would report directly to the NHS England board and said he planned to “scrutinise” the activities of the organisation and its progress on parity.

He said: “There are clearly issues with funding. Mental health is not called a Cinderella service for nothing. When finances are tough, mental health gets it in the neck every time.

“The fact of the matter is unless we deliver parity of esteem we will be asking the impossible of mental health services.”

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