The review is designed to address healthcare inequalities with people in more deprived areas and coastal towns having the fewest GPs, the worst performing services and the longest waits.

Minister of state for care Stephen Kinnock said: ‘The way GP funding is allocated is outdated and no longer fit-for-purpose – with more deprived areas and coastal communities across the country experiencing the highest levels of inequality.

‘As we invest in primary care – we must prioritise the areas and communities which have the most need to drive health improvements and close the gap on these health disparities.'

The six-month review from today will be conducted by the National Institute of Health and Care Research and will: identify a new allocation formula; assess the impact and feasibility of implementing it while ensuring it aligns to the Government's 10-Year Health Plan; and make an overall recommendation to replace the outdated Carr-Hill formula.

There are over 500 more patients per GP in the country's capital than in the South West with people in deprived areas finding it harder to access services.

Analysis by the Nuffield Trust shows practices in poorer areas employ fewer GPs, with a worse average patient experience, and have poorer CQC ratings.

Evidence from The Health Foundation suggests GP practices which serve more deprived areas receive nearly 10% less funding per patient than practices in more affluent areas.

Reaction

Luisa Pettigrew, senior policy fellow at The Health Foundation, said: ‘Making this happen will depend on additional funding going into general practice – and not removing it from one area of general practice in favour of another or relying on savings from hospitals which may never materialise.

'This is not the first time that general practice funding has been reviewed – the real test for Government is whether they follow it up with the policy change and investment needed in response.'

Nuffield Trust deputy director of research, Sarah Scobie, said: ‘The current Carr-Hill funding formula is outdated and reinforces the unfair reality that people in poorer areas get poorer healthcare. If implemented successfully, this approach could also help with the Government's aim to shift the focus of healthcare from treatment to prevention.

‘But such reform will need to come with additional funding and will require a concerted effort across Government and the GP profession to ensure that some areas don't lose out as cash is redistributed.'