Ladyman rejected calls during a House of Commons debate on the funding of children's hospitals for a national formula to be imposed on primary care trusts. But he said the Children Act 2004 enabled directors of children's services to instruct trusts to deal with gaps in local provision.
MPs also challenged his assertion that disparities between the funding of adult and child hospices could be explained by social services departments paying more to children's hospices.
MP Jeff Ennis said none of the four social services departments he contacted in South Yorkshire allocated money to children's hospices. But Ladyman said these departments would be spending a "substantial amount" on caring for children at home.
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