<p>This is the report of work commissioned by the Department of Health to inform the development of Standard Spending<p><p>Assessment formulae for allocating resources to local authorities, as specified in Bebbington & Netten (1995). The analysis is based on the 1995 PSSRU Survey of Admissions to Residential and Nursing Homes, comparing people admitted with those aged 65+ in the 1994 General Household Survey, in order to identify factors correlated with the risk of admission to local authority supported residential care, and the cost consequences to local authorities. Indicators of local authority need are developed. There are eight variants: (i) using two different approaches to weighting data from the authorities that took part in the survey; (ii) including and excluding attendance allowance as a factor in formulae; (iii) with two different approaches to adjusting for net cost
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